Last year, on average, car insurance premiums showed an upward trend and that was not good news for the motorist. One of the reasons why premiums rose was due to the increase in Insurance Premium Tax.
Well, it is interesting to find that, according to the AA British Insurance Premium Index, motor insurance premiums for the first quarter of this year have, on average, shown a small drop. The average cost of comprehensive car insurance dropped from £563.67 in the last quarter of 2015 to £561.24 in the first quarter of 2016. This was a small reduction of 0.4%. Back in the first quarter of last year the figure was £465.06 so there has been a considerable increase of 20.7% in the space of 12 months.
If you look at the price motorists were paying for such cover based upon their age those in the 17 to 22 years of age bracket were paying an average of £1,270.89 in Q1 of 2016 compared to £1,244.93 in Q4 of 2015 – a rise of 2.1%. However, those aged between 30 to 39 were paying an average of £487.10 in Q1 of 2016 in comparison to £495.01 in Q4 of 2015 – a fall of 1.6%. The lowest premiums were, on average, paid by those in the 60 to 69 years of age bracket with the average cost of fully comprehensive car insurance costing £341.38 in Q1 of 2016 compared to £343.09 in Q4 of 2015 – a drop of 0.5%.
Of course, it will be interesting to see what happens to motor insurance premiums over the next few months.
There is no doubt that not enough policyholders bother to shop around to see if they can get their cover cheaper elsewhere when they receive their annual renewal notices in the post. One of the benefits of the Internet is that you can use the likes of one or more price comparison websites to obtain car insurance quotations from a variety of providers and also look at the policy details. This information is usually available 24/7 so it is something that you can do perhaps when you get back from work. Who knows, you may be able to get the same level of adequate cover but for a lower premium with another insurance company.