Car insurance prices fall 11%

| September 24, 2012
Car insurance prices fall 11%

The average cost of car insurance premiums has fallen by nearly 11 per cent, according to research by price comparison website MoneySupermarket.

Premiums have been rising for some time but increased competition among insurers and the use of price comparison sites, has finally helped prices to fall across the UK.

Motorists in Cleveland and Harrogate enjoyed the biggest drop in prices, with a fall of 14 and 13.6 per cent respectively, but in West London premiums fell by just 3 per cent.

MoneySupermarket also reported substantial variation in the cost of car insurance in different regions, with motorists in Perth paying an average premium of just £285.95 while East Londoners are paying £938.10.

Kevin Pratt, insurance spokesperson for MoneySupermarket.com, said: “Although our analysis shows that prices appear to still be falling for motorists, there are no guarantees.

“I urge those who receive their car insurance renewal soon to act quickly to benefit from the lower car insurance prices being offered.

“Shopping around for cover around 30-40 days before your premium expires may make a real difference to the price you’re quoted.’

Rival price comparison website Gocompare.com recently warned that drivers could be wasting up to £4.7 billion annually by accepting their existing motor insurer’s quote at renewal time, rather than shopping around for a better deal.

According to Gocompare.com, 44 per cent of motorists have not switched provider for more than two years.

Scott Kelly, head of motor insurance at Gocompare said: “We know from our own figures that motorists can save an average of £399.50 by simply changing their insurer.

Yet, incredibly, just under a third of drivers haven’t switched for more than three years and, during this period, the average fully comprehensive car insurance premium has more than doubled.”

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