news

Shop around to drive down car insurance



car insurance shop aroundIt seems like car insurance premiums have been on the constant rise for years, but there are opportunities out there for savvy motorists to make savings.

The key to getting a cheaper quote is to look around and not just reuse your existing provider because it's convenient.

The AA British Insurance Premium Index has found that the "shoparound" quote for comprehensive policies, which is based on the average of the five cheapest premiums offered, fell by 1.1% in the first quarter of the year.

It might be a small step in the right direction - and it's not predicted to last for long - but with family budgets being pushed from all sides at the moment, any savings are welcome.

During the 12 months up to March 31 the shoparound index climbed by 7.7%, which is the smallest annual rise for four years.

Even the shoparound quotes for men aged 17-22 - who are normally seen as being high-risk - dropped during the first three months of the year.

However, women in the same age group saw their car insurance premiums rise sharply.

This is thought to be because from December a European ruling will force insurers to ignore gender when calculating premiums.

Ahead of the ruling's introduction, these figures indicate that insurers are starting to adjust their prices now.

Simon Douglas, director of AA Insurance, said that although many of the big factors driving up insurance premiums over the last two years have gone away, insurers are still battling growing fraud and personal injury claims.

Mr Douglas said: "I can't see this drop in premiums being sustainable for long. My fear is that if prices do continue to drop, we'll see a repeat of 2009, when industry losses led to premiums suddenly rocketing up following a long period of little movement."

Take a look at this guide for more useful information on insurance policies.






comments powered by Disqus -->







This is overlay container. The login overlays should come inside this div
Cookie Reports - MyFamilyClub Cookie Policy