Turning Tide For Car Insurance Premiums
UK motorists receiving their car insurance renewals in November should, generally, be seeing their premiums dropping. However this masks an underlying trend of market increases as insurers look to improve levels of profitability.
For the last few months the insurance industry has been speculating as to when, rather than if, car insurance premiums will start to rise again in order to address the fundamental unprofitability of many insurers' core businesses. Recent reports from Tiger.co.uk and other market observers have shown that the tide appears to have turned and that car insurance rates are on the increase again following a steady drop in rates from the all-time highs seen in mid-2011.
The latest market snapshot from Tiger.co.uk shows that whilst rates are on average down some 5.3% compared to a year ago, the monthly trend paints a very different picture. Comparing the November 2014 rates with those seen for the same driver profiles just a month ago, the car insurance comparison site's Tiger Watch data reveals a 4.3% monthly hike in average premiums.
Rate increases are noted as being particularly evident for younger male drivers, with this cohort seeing a double digit month-on-month increase in policy prices. Some female driver segments, particularly those in the 45-55 bracket, have also been hit hard. Younger female drivers, conversely, have seen a significant drop in prices both month-on-month and year-on-year.
Andrew Goulborn, Tiger.co.uk's Commercial Director, commented on the latest data: "We have seen a lot of volatility in the market in 2014 - as our graph shows. It does appear, however, that the underlying trend for the last three months has been upward and this could well continue as we head into 2015.
"We do caution, of course, that our Tiger Watch data is based on an average of rates for different driver profiles and therefore it masks some big differences in pricing by demographic - younger male and younger female drivers are seeing very different trends in pricing at present. As ever, it pays to shop around to make sure you are getting a good market rate and, vitally, the correct level of cover to meet your needs".