August Car Insurance Price Shock
The latest car insurance price data from Tiger.co.uk shows double digit month-on-month increases in premiums for many UK motorists, perhaps heralding the much-anticipated hardening of market rates.
August car insurance premiums are up by over 8.2% compared to those recorded just a month ago according to comparison site Tiger.co.uk. This follows a big drop in prices in July and could herald the onset of the much-predicted "hardening" of car insurance premiums as insurers start to push their rates back towards profitability.
Commenting on the significant increase in August pricing, Tiger.co.uk's Commercial Director, Andrew Goulborn, said: "We've seen premiums on a general downward trend for the last year or so, with rates over the last 12 months some 5.4% lower than those recorded over the previous 12 month period. The August 2014 rates that we recorded were almost 2% higher than those of August 2013 and a massive 8.2% more than the average prices seen just a month ago.
These price drops were the result of intense competition amongst insurers, driven in part at least by the expectation of reduced payouts for fraudulent claims as new government legislation starts to take effect. However these reductions in prices essentially meant that many insurers have been paying out more on claims than they have been collecting in premiums. Industry observers have been predicting that a hardening in rates is needed to address this lack of market profitability - August 2014 could be the start of this".
Tiger.co.uk has been producing its Tiger Watch car insurance price monitor since January 2010 and it is widely regarded as the most up to date indicator of trends in the market, analysing hundreds of car insurance quotes each month to produce a unique index of premiums. The August 2014 research found that price increases were particularly in evidence for younger male motorists, with the 20 and 25 year-old driver profiles seeing premiums soar by up to 18%. Younger female drivers, conversely, continued to see their premiums falling by up to 22% on a year-on-year basis.
Tiger.co.uk commented on this market volatility: "We are seeing significant short-term movements in pricing and within the overall results we see big variances by age and gender. We believe that the price increases we have seen this month will be carried through the remainder of 2014. This is why we would caution all motorists to at least benchmark their renewal prices when they get them from insurers by using a good car insurance comparison site like Tiger.co.uk".ABOUT TIGER.CO.UK
Tiger.co.uk is a trading name of Call Connection Ltd. Tiger.co.uk is a UK based, independent motor insurance comparison site, offering insurance quotes from over 150 motor insurance brands. Call Connection Ltd is authorised and regulated by the Financial Conduct Authority (FCA number 308374).