HomeCar Insurance'Car insurance prices are spiralling and drivers are losing out

‘Car insurance prices are spiralling and drivers are losing out


For all drivers, shopping around ahead of renewal is one of the best ways to save money on car insurance. We want to encourage motorists over 55, who are currently facing the largest increase in the cost of car insurance year-on-year and have typically tended more to stick with their existing insurance provider each year, to compare prices online.

Motorists over 50 could save up to £159 on their car insurance through Compare the Market. It’s also important for people to consider if they’re able to encourage or support friends and family members to look for savings online.


If you can afford the initial higher price, you could make savings by paying for insurance up-front instead of monthly.

Although it might seem easier to make smaller monthly payments, if you’re in a financial position to be able to pay your car insurance policy annually, it could lead to helpful savings by avoiding interest charges.

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Car crash

More than half of drivers have never claimed on their car insurance policy

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Choose a cheaper car to insure

The car you drive can have a big impact on your insurance, with some models offering lower premiums, on average, than others. Drivers should always check which insurance group a car is in before they consider buying it.

Buy add-ons separately

Motorists might find that some types of insurance such as breakdown cover or legal protection are cheaper if you buy them as standalone policies rather than part of your car insurance.

If you are planning to buy any add-on insurance, it might be worth looking at prices for standalone policies before you search for car insurance.”

Increase your excess

All car insurance policies have an excess, which is the amount you’ll have to pay if you make a claim.

Choosing to pay a higher voluntary excess, could bring down the cost of your premium.

However, this will cost more if you make a claim, as you’ll have to pay this higher voluntary excess as well as the compulsory excess set by the insurance provider.

Young drivers could consider adding an experienced driver to their policy

For young drivers, the cost of insurance can be prohibitively expensive.

Adding an experienced named driver to your policy is a legitimate way to bring the cost down as long as they also drive the car.
However, it is essential that all information provided to your insurer is accurate.

Young drivers should take care to avoid fronting as they could land the additional named driver with a criminal record, unlimited fines, and six penalty points.

LATEST DEVELOPMENTS:

Learner driver

The average car insurance quote for younger drivers is over £3,000

PA

Young drivers could consider a telematics policy

A telematics insurance policy fits a black box to your car, which monitors your driving and sends data to your insurer to provide a personalised quote.

This data enables more accurate risk pricing and therefore could reduce premiums for those who demonstrate that they are safe drivers.



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