CAR INSURANCE NEWS ROUNDUP: 7 DAYS ENDING 13 FEB 2015:
Say goodbye to cheap car insurance: new data says that car insurance companies have begun to raise their rates after three long years of lowered costs.
So have you been enjoying the relatively inexpensive cost of your comprehensive cover over the last few years or so? I know I have; thanks to a fantastic price war between all the major insurers there’s never been a better time to lock in a good rate for annual cover.
Unfortunately the good times are over, at least according to the British Insurance Brokers’ Association. BIBA just came out with some data this week that saw insurance rates drop by 4.4 per cent over the entirety of 2014, but the downward trend is over – and rates will be going up.
In fact, it’s already started according to both a major car insurance comparison site and the AA. Both organisations found that over the past six months rates have begun to creep upwards once more. While right now rates are still under the levels they were in 2013, both the comparison site and the AA found that the last six months of 2014 saw car insurance rates go up by anywhere from 1.4 per cent to 2.4 per cent when compared to rates in the first half of that year.
Now does this mean it’s time to run about in a mindless panic? Of course not. However the writing on the wall seems to be clear: the good times may be ending quite soon. This means that if you’re getting close to your renewal date this is likely to be the last opportunity for you to secure a good rate on your annual cover.
So what will you have to do in order to accomplish this? Well, first of all, make sure you don’t just automatically renew your policy with your existing insurer as that’s a recipe for disaster. You know as well as I do that there’s no loyalty when it comes to insurers – sure you might get a nice no-claims discount eventually but your rates can still go up. Besides if you move to another insurer sometimes you can take that discount with you, so there’s truly no excuse to not jump ship now while the going is good!