Car Insurance Pricing: Reviews and Forecasts
It's that time of year!
Every January we get the reviews of the previous year and predictions for the next, rolled out in every newspaper and magazine. And whilst car insurance pricing might not be as glamorous as the world of movies or music, it is something that affects every driver in the UK.
By and large what we are reading about 2013 car insurance premiums is good news for motorists. We've seen the AA, Confused and the ABI all releasing data in the last few days suggesting that the cost of car insurance was significantly lower in 2013 than it was the previous year. The estimated price drops for comprehensive cover ranged from 8.9% to 14.1%. Our own car insurance price monitor, Tiger Watch, produced a lower estimated fall in premiums of 2.55%. (We were also the first to signal this annual drop in rates as Tiger Watch is a monthly, rather than a quarterly, index!)
Clearly the methodology behind all these monitors varies considerably, hence the different conclusions drawn from each. But the thing they all share is that they indicate a drop in car insurance costs, the result of a combination of fierce competition in the market and a crackdown on whiplash injury fraud.
So that's the good news in the rear view mirror. What's going to happen in 2014?
Industry opinion suggests that the falls in premiums that we have seen across 2013 will level out and probably increase as the year progresses. Indeed, the first Tiger Watch results of the year showed a marked month-on-month jump of 6.2% in rates in January 2014. That rate of increase is unlikely to be sustained but it does indicate volatility in the market and the need for motorists to continue to shop around for the best deals, regardless of what's on offer from existing insurance providers.
Tiger.co.uk is of course a great place to start!