According to our new research, the average insurance premium across all age groups has risen to £675.61 - the highest it’s been since 2012. What’s more, motorists could be paying, on average £107.71 more on their car insurance than the cheap car insurance quotes offered on price comparison websites.
How do we know this? Well, every quarter, we release a report called Premium Drivers, which looks at car insurance data to work out the difference between the cheapest insurance prices and the ‘average renewal’** prices. The difference between these two prices gives us, what we refer to as, the savings variable and it helps us to determine how much you might be paying over the odds.
What we’re seeing now, is that this savings variable is bigger than ever, which means you could be paying a lot more on your car insurance if you’re not shopping around. In the last 3 months, we’ve seen the ‘average renewal’** premium has risen almost £60 to £675.61.
Unfortunately, even the cheapest or ‘shop around’ car insurance premiums, such as those you can find on our site, have seen an increase in the last 3 months - meaning it’s now more difficult to find cheap car insurance quotes. And this rise is likely to be particularly hard for any of you under the age of 25. Our latest research suggests that you’re now likely to pay, on average, £1000 to insure your car - that’s the highest it’s been since February 2013!
And why are we seeing a rise in costs? Well, it could be because of the change in Insurance Premium Tax. New tax changes took effect in November 2015 which affect all insurance products and are likely to have had an impact on your premiums.
Simon McCulloch, our Director of Insurance, says, “The cost of motor insurance at the moment is not where most consumers would want to see it. In this kind of market it is utterly essential people search out the best deals for their car insurance - by automatically renewing you could well needlessly be spending hundreds of pounds extra.”
So, when it is renewal time for you, it’s more important than ever to shop around and make sure you’re getting yourself the right deal for you. You can compare cheap car insurance quotes here to try and reduce the impact of these increasing premiums.