Car insurance rates stabilise,but premium prices still high

While it is true that car insurance rates have finally achieved some stabilisation, motor car insurance premium prices are still higher than they were 12 months ago – leaving those renewing their cover still paying more.

It is true that discount car insurance quotes on average declined by £2 to £921 throughout the past three months to the beginning of October. However, insurance premiums are still up for the year, which means that those facing renewals this month will still see rate increases, albeit £2 less than they would have three months ago.

The nearly infinitesimal decline in premium prices follows on two straight years of record high increases, with the average price of car insurance being 40 per cent more expensive in March of this year than it had been 12 months previous.  Today, price inflation stands at a much less horrific 16 per cent, which has given drivers some respite from the last 12 months’ worth of fuel price increases.

However, young drivers have once again shouldered a heavy burden, as the last quarter saw their premiums increase yet once more, despite the number of accident claims made involving or by younger motorists undergoing an encouraging decline.  The average price for annual comprehensive cover now stands at more than £921, which is a marked increas from 2010’s £791.82 average and around twice what it cost to secure car cover in October of 2007.

There is some good news, especially for those living in Scotland, as premium prices there are the lowest in the country.  The average premium north of the Border was found to be £555 for an annual policy.  Meanwhile, motorists in the North East of England, London, and Yorkshire can look forward to paying more than £1,000 for their annual car cover.

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