by Nine crucial rules have been issued to lower their premiums for millions of motorists who are facing huge increases in car insurance – in some cases double or triple what they paid the previous year. According to the Association of British Insurers, in the first quarter of 2024 the average price of comprehensive motor insurance increased by around 33 per cent (£157), compared to the same period in 2023.
The typical price paid in the first quarter of 2024 was £635, ABI said, but many are reporting much higher rises. On the BirminghamLive Cost of Living group, one member said their car insurance had increased by £300 a year and the cheapest quote they could find on comparison sites was £1,300. The latter found the annual cost had increased by £500 and many others saw their premiums double.
There was one case of a 25-year-old motorist who was not quoted nearly £1,000 on any claim, and a new driver couldn’t come up with anything less than £200 a month. Another was offered a renewal price of £1,400, compared to the £400 they paid last year, a dramatic increase of more than three times (350 per cent). So what is the cause of all this and what can be done about it?
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Michael Foote, founder of comparison site Quotegoat.com, explained: “During the pandemic, essential journeys were the only ones we were allowed to make, leading to a significant reduction in cars on the roads and a reduction in followed by car insurance costs. , as the world has gradually returned to normal, road traffic has increased, raising the risk of accidents and therefore driving back insurance costs.
“This, together with the increasing costs of providing insurance, such as higher energy costs, increased paint prices, and the supply of courtesy cars, have created the perfect price storm. on family budgets It is essential not to have insurance automatically renewing cars without exploring other options and reassessing factors such as mileage, level of cover and excess With a little dedicated research, savings can be found.”
He shared nine key rules to reduce the price of your motor insurance.
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Use price comparison websites: Each insurance provider will use their own algorithm to assess risk, so the price of insurance can vary significantly. Use comparison sites to compare prices from different insurers, and use your results to negotiate with your current provider to lower your price.
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Consider third party coverage: Fully comprehensive cover offers the most protection, but you will pay a premium for it. Consider whether third party cover or third party, fire and theft cover would work for you.
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Maintain a good credit score: Insurers may take your credit score into account when calculating your premium, so it’s important to maintain a good credit rating.
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Option with higher surplus: Choosing to pay a higher voluntary excess if you need to make a claim can reduce the cost of your insurance, but be realistic about how much you can afford to fork out in advance in case you do need to make a claim.
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Drive less: Insurance providers will often offer lower premiums to drivers who drive fewer miles. Consider walking or cycling regularly if you can to reduce your annual mileage – you’ll also save on fuel costs.
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Improve security: Having an approved alarm, immobilizer or tracking device fitted to your car can reduce the risk of theft, meaning your provider will consider it less of a risk to insure your car.
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Pay annually: If you can afford it, paying your premium annually rather than monthly can save you money right now, as insurers often charge interest on monthly payments. (This is to change soon).
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Combine your insurance policies: If you need home insurance, consider taking it out with the same insurer as your car insurance provider to get a discount.
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Avoid modifications: Modifying your car can increase your premium, so it’s worth researching the potential cost impact on your insurance
The ABI says that insurers are continuing to absorb growing costs, with the average claim paid rising by 8 per cent to reach a record £4,800 in the first quarter of this year. Demand inflation has yet to stabilise, and the costs of repairs, replacement vehicles and theft are rising, the ABI said.
Earlier in April, Dame Angela Eagle, a member of the Treasury Committee, told an insurance hearing: “My constituents and many people who write to the committee feel that insurance is becoming more and more ripped off. Because the price is go up, it is more difficult to make a claim; when they do make a claim, they often have to wait for a very long time or are not treated fairly and that is especially the case with compulsory insurance. , such as driving insurance.”
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