Car Insurance Costs to Drop For First Time in Three Years
- Reaction to government policy has put prices down
- Dropped by 2% a year on average
- Not everyone is affected
Car insurance has become one of Britain’s few bills to actually fall recently.
Figures from comparison site Confused.com show the average cost of car insurance has gone down by £13 to £768, which is a drop of 2%.
The fall is believed to be down to reforms to the law on whiplash, and a review into how compensation is paid for long-term injuries.
It is believed that these led insurers to “soften” their prices.
Louise O’Shea, chief executive of Confused.com, said, “Finally drivers have had some good news, with the end of rising insurance costs in sight.”
However, despite a drop for many customers, millions are still missing out.
The site also showed that three in five drivers saw their insurance rise £45 on average.
The reason behind this is that they renewed with their existing provider.
Similar to energy providers, shopping around for a better deal instead of sticking with your current provider is the best way to save on car insurance.
Louise O’Shea said, “It’s clear that many motorists are not seeing these savings reflected in their renewal letters, so it’s more important than ever to shop around if they want to get a better deal.
“Being loyal doesn’t always pay, so to get the message across to cost-burdened drivers, the team and I are guaranteeing to beat the price insurers are charging at point of renewal.”