Each quarter, comparethemarket.com produces the Premium Drivers report that looks at car insurance premiums here in the UK. It probably does not come as a surprise to our readers to hear that, on average, premiums have been on the increase in recent months with this no doubt being borne out by many people who have been receiving their renewal notices.
The most recent report produced this month shows that in May 2016 the average motor insurance premium stood at £698 per annum. Twelve months ago the average premium was £594 per annum so there has been an increase of £104 per annum that equates to 17.5%. We are sure that you will agree that is a sizeable increase for policyholders to have to bear.
It is interesting to read in the report that the average premium paid by drivers for their cover in the age bracket of 17 to 20 was £1,483 per annum. However, for those motorists in the same age bracket who take the trouble to shop around for their cover, they pay an average premium of £1,145 per annum. That is a saving of £338. You will no doubt agree that a saving of almost 30% is not to be sneezed at just for taking a little time to shop around to try to find as competitively priced motor insurance premium as possible.
One of the factors that will have had a negative impact on such premiums is the Insurance Premium Tax (IPT) and, unfortunately, that is not something that the customer can do anything about.
However, people should be able to shop around to see if they can obtain a more competitively priced car insurance policy than they presently have when they receive their renewal notice. Those that are seeking such cover for the first time should also be able to shop around using say one or more price comparison websites. Other than giving up some of your time it should cost nothing to try to find a competitive deal especially bearing in mind the potential saving that you may be able to make which would surely be most welcome.