Car insurance companies say prices drop – but for whom?

You may not believe it when you hear it, but car insurance companies say that the average cost of a comprehensive motor car insurance policy has actually begun to decline for the first time in four years.

However, anyone who’s just recently gotten a renewal notice in the post may find this bit of information confusing, especially when looking at how much their car insurance rates are set to go up next year.  Even those individuals who have kept a clean driving record and have not altered their personal circumstances – like moving to a new address in a part of the UK that is a higher risk area for insurers – may find themselves faced with a confusing notice telling them their rates are going up.

Industry experts say that if you’re getting an exorbitant rate hike from your insurer, you’re not alone; most of the discount car insurance deals don’t go to loyal policy holders but are instead reserved as a way to entice new customers to their ranks.  This means that you may need to actually switch insurers to get your own piece of the pie, experts warn, as the only way you’re going to get a less expensive insurance premium is to jump ship – or at least threaten your current insurer that you’re going to do so.

Meanwhile, the research that found that insurance prices have gone down for the first time since 2008 tend to leave off one important detail.  Another independent research study found that today’s prices are still 61 per cent higher than they were in 2006, meaning that all of us are paying much more on average than we were six years ago before the credit crunch, so most members of the public might not have much to celebrate after all.

© 2019 All rights reserved. Reproduction in whole or in part without permission is prohibited. See our copyright notice.

What do you think?

Please note that email addresses are not visible on approved comments.