Car Insurance Price Snapshot
Car insurance premiums in October are some 8% below prices recorded 12 months ago according to comparison site Tiger.co.uk. However, rates have increased over the last month, perhaps heralding the much anticipated hardening of the car insurance market.
Car insurance prices are still significantly cheaper than a year ago, according to the latest research from comparison site Tiger.co.uk. The site's Tiger Watch monitor - a monthly car insurance price tracker - shows that rates have fallen by over 7.7% compared with those recorded in October 2013.
According to Tiger.co.uk's Commercial Director, Andrew Goulborn, the drop in prices has been driven mainly by a reduction in rates for younger drivers: "We are seeing double digit percentage drops in pricing for the younger driver profiles that we study. Interestingly, this appears to be driven by more competitive pricing from non-telematics insurance providers. And for some of our older driver profiles, such as 35 year old males and female motorists, we are actually seeing annual inflation in the market".
Looking at the shorter-term picture, Tiger Watch reveals that car insurance premiums have climbed by around 0.7% over the last month. This shift could herald a much anticipated hardening of insurance rates following a long period of falling premiums. Tiger Watch's Goulborn commented: "The premiums that we are seeing in the market now are at about the same as those seen in mid-2010. With insurers generally struggling with profitability in the car insurance sector, we do expect rates to harden in late 2014 or early 2015 and would advise UK motorists to always benchmark their renewal prices using a good car insurance comparison site like Tiger.co.uk".