Here’s something that will set your teeth on edge: average best buy car insurance premiums have gone up by more than 10 per cent year-on-year from 30 November.
At least that’s what the newest crop of market research has revealed. The costs of motor car insurance are going through the roof apparently due in part to the Insurance Premium Tax getting hiked, an action that put the brakes on free-falling car insurance rates.
So what are the new rates? Well, after Consumer Intelligence decided to crunch the numbers by doing a car insurance comparison for more than 3,500 people looking for insurance through the most popular direct insurers and the biggest major aggregator websites, it turns out that best buy deals in the year to date had gone up by 10.9 per cent. The new total? £696.
Now keep in mind that this is just the average increase. Some fared better, and some fared worse. Believe it or not the worst off were the over-50s, as they were hit with an average increase of 16.4 per cent. However, the average premium for that demographic is now just £279, so the cost in real money isn’t that bad when you take everything into account. Conversely, the average insurance price for someone under 25 was a whopping £1,680 – almost criminally high, if you ask me – but their rates went up by “only” 1.5 per cent.
So there you have it – in other words, your mileage may vary, but the main culprit behind the rise is the IPT going up. It’s not pretty but there’s not much you can truly do for it unless you’re thinking of selling your vehicle and going with public transport. Of course that’s not an option for anyone out in the regions or where there’s no good transport links. If you’ve got to drive to find work, for instance, but you can’t afford to keep a car because you don’t have a job, the IPT price hike isn’t exactly doing you any favours now is it?
Honestly if you ask me your best bet is going to continue to compare car insurance as well as you can between all the different comparison sites and even some direct insurers as well. It’s likely to be a slow, painstaking process, but the worst thing you could do right now is to simply let your insurance auto-renew, which will nearly guarantee a higher rate. So try your hardest, best of luck, and don’t rest on your laurels – maybe you’ll have a good result.