Rising Insurance Prices : How to cut your Premium?

 

High Rise Of Car Insurance Cost In The Last Six Months

Ways To Keep Your Premium Down

Car insurance costs are on the increase once again after more than three years of premiums lowering.

The British Insurance Brokers’ Association’s (BIBA) annual figures reveal that for the whole year of 2014 car insurance costs had fallen by 4.4%.

On the other hand AA’s quarterly data as well as data from Confused, a price comparison site, pointed that prices have begun to rise since past six months even though they were lower than the 2013 prices.

Retro car headlight

AA British Insurance Premium Index’s figures disclosed that car insurance costs were 1.4% higher for 2014’s second half compared to the first half, while analysis from the website Confused acknowledged an increase of 2.4% in the same time period.

Regardless of the rises in recent months, the findings from Confused and AA were in sync with BIBA’s agreeing that compared to 2013 prices were lower in 2014. Fall in the average premium according to AA figures was from 660 pounds at the start of 2013 to 540 pounds at the end of 2014. Even according to Confused rates fell across the 2 years, from 736 pounds to 594 pounds.

At the beginning of 2012 itself rates began to fall when as per AA the average premium was 724 pounds, which were accredited to improved competition in the car insurance sector. The rising number of fraudulent personal injury claims is the reason behind the increase in rates.

Though car insurance costs are rising, home insurance rates are decreasing and BIBA’s analysis revealed premiums to be down by 4.1% in 2014. AA revealed 5.3% fall for the same year.

The year on year fall in premium rates should signify that you are saving on car insurance and it can be further reduced in a number of ways.

Find best deals via comparison sites

Comparison sites can be used to check premiums and narrow down insurers that are cheapest for your requirements. If time permits you should check more of such sites as they help compare different providers.

You could compare the findings against our recommended list of providers thereby helping you select an insurer which has strong customer feedback and greater level of coverage.

Haggle if you choose not to switch

Usually insurers save their best deals for new customers, so at the time of renewal, if you decide to stay with the current provider, ensure that you haggle to lower your annual costs.

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