23rd December 2011
We've just published our last “Tiger Watch” results for 2011. This is the monthly car insurance price monitor that we produce to keep an eye on what’s going on. Some of you may have seen this featured in The Sunday Times last week?
Our estimate is that the annual inflation figure for 2011 is 16.5%, roughly four times the general rate of inflation. When added to the 33% inflation that we saw in 2010, that equates to a massive 55% rise in premiums over the last two years.
However, it’s not all doom and gloom. 2011 was, in footballing parlance, a game of two halves. Anyone renewing their car insurance policies between January and June this year could have seen price increases of around 30%. However those renewing in the latter half of the year saw increases of around 5.5% - but remember that these drivers would have had a hefty increase a year earlier.
In fact we estimate that car insurance prices in the last three months of 2011 actually dropped by 2.2% when compared with the previous quarter. So we are seeing a return to relative stability in the car insurance market.
Tiger.co.uk predictions for 2011? Well we’ve huddled round the crystal ball and come up with three.
- We think that in terms of car insurance pricing, we can expect increases close to RPI – so maybe in the region of 5% across the whole of 2012, as insurers maintain their recent levels of competition for business.
- Telematics car insurance (the type that involves the fitting of a smart box that monitors driver behaviour) will continue to grow and we will see more than a dozen new products hit the market over the year, including products from some of the UK’s largest insurers.
- That all drivers will continue to get a cracking deal when they compare car insurance prices on Tiger.co.uk! Our recent survey of shoppers told us that four out of five people saved at least £50. And more than a quarter of buyers saved over £300 using the site!
Have a great Christmas. Drive safely!