Confused.com’s quarterly car insurance price index has revealed that premiums rose by £220 in the past year, so find out how to keep your premium to a minimum.
Motorists are continuing to feel the pinch as the average cost of comprehensive car insurance cover now stands at £835 - a rise of £220 in the last 12 months.
But there is some good news for drivers as the quarterly Confused.com/Towers Watson Car Insurance Price Index also found that price rises are beginning to slow.
The key findings are that the average price of a comprehensive car insurance policy rose by 3.8 per cent in the first quarter of 2011 compared with 7.1 per cent in the final quarter of 2010.
Third party policies cost more
The quarterly research also revealed that motorists are paying out more for third party, fire and theft policies than for comprehensive cover.
The average annual third party, fire and theft premium stands at £1,121 compared with £835 for annual comprehensive cover.
While the cost of car insurance for younger drivers has been the subject of many headlines recently, Confused.com’s research found that drivers aged 36 to 45 have faced the biggest price rises.
The average quote for drivers in this age bracket rose by five per cent in the first three months of 2011.
Gender and regional differences
In terms of gender, women aged between 66 and 70 have seen the highest quarterly increase in premiums with a rise of 5.8 per cent over the last three months.
Motorists in the Manchester and Merseyside area paid more for car insurance than drivers in the rest of the country with the cost of comprehensive cover rising by 47.1 per cent in the past 12 months.
Bradford remains the postcode with the fastest rising prices over the past 12 months at 54.4 per cent.
How to keep costs low
Despite the rise in car insurance premiums, there are things you can do to keep your car insurance costs low.
Gareth Lane, motoring analyst at Confused.com said: “The best way to keep premiums low is to shop around for car insurance to ensure you’re always getting the best deal the market has to offer.
“With price comparison making it easier than ever to get the right policy at the right price for a driver’s individual circumstance, now is the time to get online and start searching for the best deal.
“All insurers rate differently – some specialise in specific risk groups such as young drivers, learner drivers, or those with high no claims bonus, so it’s important not to call off the search if your renewal or original quote price is higher than expected.”
Tips to keep your car insurance costs down
Small is cheap
Small cars mean cheap car insurance. Your car's value, type and engine size all make a difference to your premium. Generally, the smaller the car the lower the cost and therefore the lower the premium. Find out which are the ten cheapest cars to insure here.
Check your mileage
Mileage is one of the rating factors that insurance providers use to calculate a person’s premium. It’s therefore always best to work out, as best you can, the number of miles you're likely to be driving in a year and make sure your not over estimating how much you use your car.
Higher excess, lower premium
Adjust your voluntary excess. This is an amount you choose to pay in the event of a claim. In return for opting for a higher excess, the insurance provider will usually lower the premium paid. Bear in mind though, that the voluntary excess will always be paid in addition to any compulsory excess.
Value your vehicle accurately
Estimate as best as you can the value of your vehicle because it’s incorrect to assume the higher you value your car the more money you’ll receive in the event of a claim. Insurance providers will only pay out the current market value of the vehicle so inflating the value serves no purpose other than increasing your car insurance premium.
To calculate your estimated car insurance costs try our handy car insurance price index calculator where in seconds you can get the average car insurance costs by age, sex, and region.
!!-- Confused Replacement Quote Me Car Insurance --!!
Please watch our 30-second guide for more information.
