Car Insurance Prices Drop Again. Or Do They?
Every month the Tiger.co.uk statisticians get out their calculators and slide rules and pore over sheet after sheet of car insurance quotes to look at price trends in the market. The output of all this brainercise is Tiger Watch, our very own monthly price monitor that helps us (and you) keep tabs on what’s happening to car insurance rates.
Last month we saw pricing drop about 2% versus the previous month. In this month’s data we have seen another monthly decline of just over 4% and, for the first time, we have seen average year on year rates fall. Not by much – just about 2% - but enough to provide a crumb of comfort to the UK’s hard-pressed, wallet-squeezed motorists.
Every silver lining, however, comes with its very own cloud. When we step back and take a look at the bigger picture it still makes fairly unpleasant reading for drivers. The thousands of car insurance quotes that we've looked at across 2011 to date are still over 16% ahead of the 2010 average figure. So what we appear to be seeing in the last couple of months is the brakes being applied to what has been close to runaway inflation across the last 20 months. Hardly a return to the halcyon days of cheap car insurance but undoubtedly better news, however, for any drivers with renewals coming up in the next few months who might have been bracing themselves for another massive hike in their annual premium.
Our advice remains constant in what is a fast-changing marketplace. Always shop around using an independent price comparison site like Tiger.co.uk. Always look beyond a cheap car insurance price to see what’s included (or more importantly what’s excluded) from the policy and what levels of excess it carries. And always try to pay your premium in a single annual sum – taking out a 0% interest-free credit card specifically to do this could save massive interest costs.