With the new year in full swing, the cost of the average car insurance premium has fallen by as much as 8%, as UK insurers look to offer more competitive rates.
In December, insurers tend to offer less competitive rates as they wind down for the Christmas period. Hence, the average policy for insuring a car can be 13% higher than compared to the rest of the year. The average policy in the UK now costs around £800 per year, which is the highest on record.
“Most UK households tend to avoid shopping for insurance in December” explains Andrew Speer from price comparison site, Proper Finance. “Instead, the priority falls on spending on the festive season, including days out with the family and presents.”
“At the same time, insurers have less incentive to lower their prices unless they really need to hit targets. Also, there are a lot of motorists that like to run their cover over one calendar year, so they are in a position to find new deals or renew their policies in January, when it is also likely to be cheaper.”
“This is a great opportunity to start off the new year with a good saving, especially after an expensive December period. Those that can benefit the most include young drivers and those that have a history of claims in the past.”
Despite the rising costs of average policies, there is now more technology available to help reduce the cost of policies on the road. This includes using a telematics box to monitor your quality of driving and mileage – which typically results in a saving for safer drivers. There is also the use of dashboard cams which can record footage of your driving and any potential accidents and improve the legitimacy of a claim.
At a policy level, savings can be made by avoiding claims and using a no claims bonus and paying off an entire premium in full, rather than monthly instalments. Households can also look at buying group cover through multi car policies, adding an experienced named driver to the account or combining both multicar and home policies too.
For commercial vehicles such as vans, lorries and couriers, companies have the opportunity to buy insurance in a fleet to save money. By putting all your vehicles under one single policy, you save on admin and benefit from one straightforward renewal date. Add-ons to your policy can include goods in transit insurance, business interruption and contents insurance too, and buying in bulk allows you to save as much as 20% on your overall policy. (Source: Fleets Insurance).
Content produced by Tudor Lodge Consultants.
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