Many motorists have been faced with a large increase in the cost of obtaining insurance on their cars in recent months. Premiums have also been subject to a rise in Insurance Premium Tax (IPT) and on top of those things fuel prices have been unstable with increases seen of late.
According to the British Insurance Brokers Association (BIBA) and Acturis Insurance Price Index, the average cost of obtaining private car insurance has gone up by 15% between 1st April and 30 June 2016 when you include IPT in comparison to the same period last year. We are sure that you will all agree that this is a very large rise and something that the motorist could have done without.
Some young drivers are faced with having to pay a four-figure annual car insurance premium that can often exceed the amount that they are paying in car loan repayments each year. It has been suggested by Ageas Insurance that IPT be waived for motorists that take out telematics insurance on their cars as this would result in more young drivers arranging such cover and that the number of road traffic accidents would fall. This request has been supported by the BIBA. It will be interesting to see how the government responds in this respect.
So, what can the motorist do to try to reduce their motor insurance premiums? Well, one of the potential ways to do this is to shop around to see if they can get cheaper car insurance from another provider. This could be done, for instance, once a renewal notice is received from the existing insurer or if some one is looking for cover for the first time.
A quick way of shopping around is to use a specialist car insurance price comparison website that has an extensive panel of insurance companies. These can be accessed online with you usually only having to provide the requested information once. Not only should you be able to get comparative quotes but you should also be able to view product particulars and may even be able to arrange to go on risk and pay for the cover online.