Car Insurance Savings variable
The past few years have proved to be an expensive time for UK drivers. Our latest report suggests that insurance premiums have increased. The savings variable in September - November 2018 has expanded over the past three months to 15.55%, up from 15.45%, after it had been steadily falling since it reached a high of 17.27% in Q3 2017.
Today, the average quarterly premium – blended across all age groups – has risen to £744, an increase of £12 compared with the previous quarter. Motorists are paying an average of £217 more for their car insurance today than they were five years ago.
However, in the past two years, the savings variable has in fact narrowed, suggesting a higher level of competition amongst providers. This might lead to lower prices as insurance providers battle to win customers with better offers. Despite downward pressure on prices, the fact remains that drivers are still facing far higher motor insurance premiums, especially if they fail to shop around.
As premiums have risen, so too have the potential savings to be made. The way to mitigate these rises and encourage competition among providers is for consumers to shop around every year.