Reprieve on rising car insurance rates – for now

The first quarter of 2016 turns out to have been a much less expensive one for anyone needing to secure motor car insurance, new research says.

So what happened exactly? Well it turns out that for Q1 2016, the average price of a comprehensive car insurance policy in the UK stayed relatively unchanged. Or at least that’s what one major car insurance comparison site is saying, as it gathered all the data it collected in this year’s first quarter and ran it through an abacus or something.

Essentially, the research shows that car insurance rates for comprehensive cover remained at an average of £671. Meanwhile, third party, fire and theft cover actually fell a bit – around 0.1 per cent, or £1 – to a new average of £1,128. Not much of a help there really, but the paradoxically high price of that lower tier insurance isn’t all that surprising.

Whatever your may think, the sudden stability is a welcome change. In 2015 alone comprehensive cover went up by 13.2 per cent. Third party cover went up by an even more unconscionable 16.8 per cent over the last year as well, so starting the first quarter of this year with no insurance price hikes is absolutely welcome if you ask me!

So will this trend last? Will prices begin to slip downwards again so we can all afford to take out car cover regardless of our economic situation? Is it proper to ask three questions in a row? The jury is out on all of these things (though perhaps not the last one). Truth be told, the car insurance market is so volatile that there’s really no telling where it’s going to go in the next three months, much less the rest of the year.

All I can recommend is that you enjoy the brief respite from constantly climbing premium prices, and know that if you do happen to renew sometime soon, you’re still likely to pay more than you did the year before – but at least you’re not going to be completely taken advantage of by your insurer. Don’t forget that you can always shop around for a better deal when the time comes; as car insurance companies reserve their best deals for new customers, switching from your existing insurer can be your best bet to manage the costs of keeping your car on the road. Best of luck!

© 2018 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.