Third Quarter Sees Premiums Drop

Motorists will be pleased to read that the cost of car insurance has continued to fall in the third quarter of 2018 based upon analysis by the price comparison website MoneySuperMarket.com. This will be welcome news at a time when we are seeing the price of fuel rise at petrol stations in various parts of the UK.

The price comparison website has examined numerous quotes via its website and has found that the cost of fully comprehensive car insurance has dropped from an average of £553 per annum in Q3 of 2017 to an average of £484 per annum in Q3 of 2018. That is a drop of £69 per annum and equates to a fall of over 12%.

One of the reasons for this fall is believed to be due to the way that the Ogden Discount Rate is calculated meaning that insurance companies do not need to set so much aside to meet claims for personal injury.

Obviously, as previously mentioned, that figure of £484 per annum is an average and there is a wide variance for motorists with young drivers still having to pay more on average for their motor insurance than an experienced, mature driver. To be honest, much as the young driver will not like this, insurance companies are aware that young drivers are more likely to be involved in a road traffic accident than say someone who is 55 years of age.

There are so many factors that impact the premium charged by insurers such as the make and model of vehicle i.e. it will cost more to insure a high-performance Porsche than it would a Ford KA. Where you live affects the premium you pay i.e. if you live in London then you are likely to pay more than if you lived in a remote area of the Scottish Highlands. The number of miles you travel is a factor i.e. if you drive 30,000 miles per annum in your car then you are more likely to have a road traffic accident than if you only drove 3,000 miles per annum.

With so many insurance companies it is important that you shop around to try to get a competitive deal on your motor insurance. One way of doing this is to use the services of a price comparison website that is available 24/7 and is so quick to compare quotes. It may even be possible to arrange the cover online.

Unfortunately, too many people do not bother to get a competitive quote upon receipt of their renewal notice. A large percentage of motorists just accept the revised renewal premium and carry on with their existing insurer for another 12 months when, if they had done some shopping around, they may have been able to get cheaper cover for their vehicle. So, why not take the opportunity to obtain a car insurance quote via our website and see if you can save some money.