There is further good news for many car insurance policyholders following the release of the Confused.com price index for car insurance for the first quarter of 2014. This index is produced in conjunction with Towers Watson.
Of course, whilst it is good news for many motorists, it is the opposite for insurance companies whose profits may well be affected.
The figures reveal that in 12 months the cost of providing comprehensive car insurance has fallen by an average of 19.1%. We are sure that you will agree this is a huge reduction. In the first quarter of 2013, the average premium paid for fully comprehensive car insurance was £736. In the first quarter of 2014, the average premium paid for the same level of cover had fallen to £596.
Great news for the young driver as they have seen the biggest reduction with a 17 year old seeing premiums drop by a huge 39%. This has resulted in the average premium falling from £3,587 to £2,203 per annum for a 17-year-old. If you are a young driver or know someone that is you will be aware that car insurance premiums have sometimes been so prohibitive that it has stopped some people buying a car.
When you look at the regional differences in prices for car insurance the survey revealed that there were reductions in each region but the biggest drops were seen in Merseyside and Manchester with reductions of 23%.
The above news surely makes it very important that people that are renewing their car insurance policies shop around to see if they can get a cheaper car insurance policy than they presently have with their existing insurer. One of the ways of trying to get a better deal on your car insurance is to use a price comparison website as they may be able to provide you with access to a substantial number of car insurance companies many of whom will be trying to obtain your business.