The price of car insurance in the UK has reached an all-time high, with average premiums rising by 19% in the past year. This is due to a number of factors, including rising repair costs, increased competition from new insurers, and the introduction of new safety features.
The average cost of car insurance in the UK is now £976, according to research by Comparethemarket. This is up from £824 in the same period last year. The rise in prices has been particularly pronounced for young drivers, with premiums for 17-year-olds rising by 30% to an average of £2,414.
Another factor is the increased competition from new insurers. In recent years, a number of new insurers have entered the UK market, offering lower prices than traditional insurers. This has put pressure on prices, forcing traditional insurers to raise their premiums.
Finally, the introduction of new safety features has also contributed to the rise in car insurance prices. These features, such as autonomous emergency braking and lane departure warning, can add thousands of pounds to the cost of a car. However, they can also reduce the risk of accidents, which can lead to lower insurance premiums in the long run.
The rise in car insurance prices is a major concern for motorists, particularly young drivers. It is likely that prices will continue to rise in the coming years, as the cost of repairs continues to increase and new safety features are introduced.
What can motorists do to reduce their car insurance premiums?
There are a number of things that motorists can do to reduce their car insurance premiums. These include:
- Increasing their no-claims bonus: The longer a driver has a no-claims bonus, the lower their premiums will be.
- Driving a newer car: Cars that are less than five years old tend to have lower insurance premiums than older cars.
- Insurance shopping around: It is important to compare quotes from different insurers before taking out a policy.
- Considering black box insurance: Black box insurance policies track a driver’s driving habits and reward safe drivers with lower premiums.
- Taking a driving course: Drivers who take a driving course can often qualify for a discount on their insurance premiums.
By taking these steps, motorists can reduce their car insurance premiums and save money.
