Car insurance Updated:
It's good news for motorists – car insurance premiums fell over the course of 2014, with figures from the Association of British Insurers (ABI) indicating that competition is still fierce in the sector. Is it time you took advantage?
According to the ABI's Quarterly Average Private Comprehensive Motor Insurance Premium Tracker, the average price paid for comprehensive car insurance during the year fell by 4% compared with 2013, with the typical premium in the final three months of 2014 costing £372.
Analysis suggests that much of the reduction has been the result of ongoing competition between providers, as well as changes to the system which has seen a reduction in lawyer fees, and insurers have passed these savings onto customers. There are even hopes that premiums could reduce further in the coming months, thanks to new regulations that could see the end of fraudulent whiplash claims.
James Dalton, of the ABI, comments: "The motor insurance market remains highly competitive, with insurers delivering on their commitment to pass on savings to customers following the introduction of reforms to the civil justice system. We have seen an increase in low value claims starting to feed through into pricing, [but] the introduction of MedCo in April to oversee the production of independent medical reports in whiplash claims should deter the cheats and ensure honest motorists continue to get competitively-priced motor insurance."
Given that the cost of insurance can often take up a significant chunk of the household budget, knowing that premiums are reducing should come as welcome news to motorists. But, what if you could save more than 4%? If you shopped around and compared all available options you have the potential to lower your premiums by far more, so if you're coming up to your renewal date, don't stay loyal to your insurer without considering the alternatives – use our car insurance comparison tool to see what else is out there!
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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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