What is happening with car insurance premiums? It had appeared that they were on the increase. Back on the 7th April we discussed this very thing with CompareThe Market reporting that the average premium in the 12 months to February 2015 had risen to £561.10 per annum (up £21.90 pa compared to the same period up to February 2014). Opinions had been expressed within the industry that premiums were likely to continue to go up during the remainder of 2015.
Well, according to information from the Association of British Insurers, some car insurance premiums reduced in the first quarter of 2015. The ABI’s Quarterly Average Private Comprehensive Motor Insurance Premium Tracker was issued on 1st May 2015 and this revealed that private fully comprehensive motor insurance premiums had fallen in the first 3 months of this year.
Such premiums averaged £360 per annum with this being a drop of 2% when compared with Q4 in 2014. However, it was slightly more when compared with the first three-month period in 2014. It is however 5% less than in Q1 of 2013.
It is difficult to predict what is going to happen to premiums going forward so what can you do to try to mitigate any increase that you might find when you receive your renewal notice? Well you can shop around to see if you can improve on the deal your existing insurer is offering. It costs you nothing to make such enquiries and it is quick to do if you use the likes of a price comparison website.
You can check the cover that you have to make sure that you are not over insured. For instance, how many miles per annum do you travel in the car each year? If you only do say 5,000 miles per annum but are insured to drive say 30,000 miles each year your premium may reduce when you inform the insurer of the revised figure. Do you have your son or daughter on the policy as an additional driver because they were learning to drive in your car many years ago? If they are never going to drive your car again there seems little point in having them remain on the policy. Removing them may lower the premium.
It will be interesting to see what happens to car insurance premiums throughout the rest of this year.