Insurance prices drop, and continue to do so – it’s amazing

CAR INSURANCE NEWS ROUNDUP: 7 DAYS ENDING 16 JULY 2014:

New research revealed this week showcased how car insurance rates have been dropping consistently for a long time now – and that they will continue to do so.

In fact, a major insurance comparison site has said that premiums for motor car insurance have dropped once more in 2014’s second quarter. The massive average price decrease was a whopping £17. Yes, that was sarcasm you’re sensing. Of course the comparison site was quick to point out that while the drop was meagre, this is the tenth consecutive time it’s found a price decrease. For the last 12 months prices have declined by around 15 per cent, the comparison site’s research said, with total savings of around £100 on average.

I suppose even a small drop is good news for anyone struggling to pay the bills, and if your car insurance has gone down over this period it’s probably given you at least a brief respite. Of course these drops will most likely continue to occur, especially since the new DVLA database is set to go live any month now.

The adoption of the database, which will furnish car insurance companies with the individual driving records of anyone and everyone to ever step behind a wheel, means that insurers no longer have to rely on their customers to accurately self-report how many points they have on their licence. This means that premium prices will change accordingly – and the Powers That Be say it should save all motorists around an additional £15 on their premiums.

Yes, I know it sounds like chicken feed, and that’s surely what it is. Still, all these miniature downward reductions do indeed add up over time, and that is indeed why average comprehensive cover quotes have indeed gone down. Of course the long term prognosis isn’t nearly as bright, as industry experts are already warning that these ‘massive price drops’ won’t be able to be sustained and that the nation’s insurers are sure to raise rates higher sooner or later.

In other words, enjoy this while it lasts, lads! Because there’s no telling when the hammer will fall and we’ll go back to paying through the nose for motor cover once again.

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