Moneysupermarket has revealed figures that shows car insurance increases have continued to stall: average premiums in June were £5 lower than in May.
The average car insurance quote generated on the price comparison site was £406 last month, down from £411 in May. That’s a reduction of 1.2%; the year-on-year saving is 3.1%, or £13.
While small, these are still savings, and mean that car insurance is no longer continuing to rocket. A welcome turnaround compared to the situation just a few years back: those renewing a policy, says Moneysupermarket, “should be able to make a considerable saving”.
More good news may be in store too, says Moneysupermarket insurance expert Kevin Pratt. Speaking of news the Transport Committee is to urge the Government to further reduce car insurance claim costs, “a further lowering of car cover premiums should be on the way.
“Insurance claims fraud has inflated car insurance premium prices for all drivers and anything that helps tackle this scourge is good news for honest motorists”.
Car insurance: from £554 to £401
Moneysupermarket also revealed results from analysis of 42.5 million car insurance quotes run on the site between January 2011 and June 2014. This shows that back in April 2011, the average car insurance premium was a hefty £554: by April this year, it had plummeted to £401.
“The overall trend of deflation persists as competition among insurance continues,” added Pratt. But the bests savings will only be found, he said, if motorists shop around. “Sticking with an existing insurer is unlikely to secure the best deal.”