According to a recent industry survey, comprehensive car insurance rates fell by a rate of 1.6 per cent in this year’s third quarter, giving hopes that discount car insurance in the UK could be making a comeback.
This quarterly drop in premium prices was the first one in more than three years, industry experts say, with increases over the past 12 months only 12.3 per cent. Motor car insurance premium prices increases were much higher in 2010, with total rate hikes coming in at 37.8 per cent.
Unfortunately, premiums for third party, fire and theft cover did not fare nearly so well as comprehensive premium prices. TPFT rates increased by 2 per cent in Q3 2011, which equates to an increase of £192 on the average policy. This means the typical price for TPFT cover is now £1,155, while comprehensive cover is only £843, even after increasing by £92 over the same period of time.
Industry experts stated that prices rose steeply due to the insurance industry adapting and reacting to increased motor car insurance claims that had bodily injury components. While the economic recession has done its part to reduce claims numbers due to people spending less time behind the wheel in an attempt to save money on petrol, the number of accidents that resulted in personal injury claims is still increasing at a marked rate, experts added.
Other experts said that customers finally have some reason to celebrate due to premium prices finally appearing to level out. Additionally, momentum is growing in the legal sector to create an environment wherein the majority of the country’s honest, responsible motorists can get a fair shake from insurance providers.