Are Car Insurance Premiums On The Increase?

Let’s be honest, many people have seen the cost of insuring their cars drop in recent years. However, have we now seen the end of such reductions? We say this because of the information contained in the car insurance price index that is conducted in association with Towers Watson.

are we likely to see car insurance premiums rise further in the next few months?

Are average comprehensive car insurance premiums going to continue to rise?

This index is produced every 3 months and the one covering the 3rd quarter of 2014 does give a little cause for concern.

In the 2nd quarter of 2014, the average cost of fully comprehensive car insurance was £579 per annum. During the 3rd quarter of this year that figure had gone up to £582 per annum. Yes, it may only be an increase of £3 per annum but it is the first increase seen since June 2011.

Is this a surprise? Not really as it was predicted to happen at some point.

The % increase for quarter on quarter varied between regions with the biggest increase being 2.6% in the South. Scotland didn’t come out of this very well as East and North East Scotland saw a rise of 2.5% and the Highlands and Islands of Scotland saw a 1.9% rise. The East Midlands saw an increase of 0.8% and Inner London a rise of 1.2%.

It is interesting to look at the impact on different age groups as you may have thought it was the youngest drivers that suffered the biggest increase. No, in fact it was those 66 years of age who saw the biggest % rise at 6.1% for the quarter. A 19 year old would have seen an increase of 3.7% and a 20 year old a 3% rise. Those aged 71+ saw a rise of 1.9%.

It is important that you should consider shopping around for your car insurance to see if you can get a cheaper car insurance deal but still get the cover that you need. One way to do this is to use a price comparison website that is quick and simple to use. It costs you nothing to shop around other than some of your time.