Car insurance rates have been dropping and according to the latest report from the Association of British Insurers (ABI) the average premium for a comprehensive policy fell by 8.9% in comparison to last year at a rate of £374 which is £36 less than twelve months ago. The lower rates on the market are attributed to a crackdown on false claims being filed, namely for phony whiplash claims, and due to the fact that drivers are becoming better bargain shoppers when it comes to car insurance. The new quarterly tracker is developed on data collected from the ABI’s 36 members in the UK according to actual insurance premiums paid by drivers on true policies versus other trackers that use quoted data for determination of averages. It therefore reflects what people are already paying for insurance rather than what people would pay if they purchased a newly quoted policy.
The report also revealed that 81% of drivers in the UK bought their current policy after comparing prices. Most used their smartphones, Web sites, and other online means to do their comparison shopping for car insurance. This percentage of comparison shopping is higher than that of comparison shopping reported for energy suppliers (77%) or mobile phone providers (64%).
Experts suggest that those shopping for a new policy or those looking to switch should start with telematics. Telematics car insurance could offer the opportunity for saving on car insurance above and beyond that of standard car insurance. Even young drivers could find savings with telematics.
The current market has more competitive rates available than a year ago and therefore drivers are encouraged to consider shopping for a new policy to find savings that could be waiting for them with a simple switch.