Cheapest car insurance

Is cheap car insurance a myth?

When it comes to high risk groups, such as younger drivers and people who have put in multiple claims in the past, does it still make sense to see cheaper premiums as something of a holy grail, unachievable but for the chosen few? Given the fact that insurance prices have risen – on average for all drivers – in the course of 2016 so far, you might be forgiven for thinking that low cost options are a thing of the past. But let us look at some of the facts of the automotive insurance industry and show a little less reliance on some of the myths out there.

Myth Busting

Firstly, it should be said that, despite the presence of cheap car insurance sites such as WWW.PrudentPlus.com, Compare the Market etc, one leading comparison site has published figures in association with a respected insurance specialist that show prices have gone up by almost a fifth in the last twelve months. Indeed, their analysis shows that an upturn of 19 per cent has been seen in the second quarter of 2016 compared with a year before with rises being seen for the last four consecutive quarters. However, the increases have not been felt equally in all parts of the country. For example, motorists in Northern Ireland have had to fork out much more for their car insurance, compared with 2015, than any other region.

Secondly, the people who pay the most for their insurance premiums have seen the slowest growth in price. The lowest age group category, those aged 17 years of age, saw the smallest yearly price hike of just eight per cent when compared to other groups categorised by age. Nevertheless, this group's mean average car insurance still adds up to a shopping £2,013. Those drivers aged 68 tend to see the lowest premium costs and, given regional variations, can expect to see annual costs of only £490.

Thirdly, there is a difference when it comes to gender. Insurers have seen fit to charge both men and women more than they did in 2015, but the increases have not been shared equally by the sexes. Men can expect to cough up £756 per annum on their car insurance while women attract an average fee of £664 to remain on the road. For men, that constitutes an average increase of £98, but women have had to stomach a whopping annual upturn of some £129.

The True Picture

It all seems like bad news, unless you happen to be a female driver in her late sixties who happens to live in a part of the country with few insurance claimants! However, the annual index does require a bit more analysis to get a truer picture. This is largely because, from the final part of 2011, insurance prices have been dropping. Consumers had enjoyed lower costs for their insurance for the three years that followed 2011 and it was only at the start of 2015 that prices, on average, began to go up once more. This slow down in prices was partially due to the 2013 ban on referral fees insurance companies had been in the habit of charging.

Of course, price comparison sites are saving many consumers money when they buy car insurance. How can this be when the average price has gone up recently? One of the key factors is that some niche insurers are able to offer lower premiums, especially for those with specific requirements, such as multi-driver policies or modified car insurance. Prices can often be subject to special offers too, such as breakdown recovery being packaged in. Cheaper car insurance can still be achieved if you don't opt for comprehensive cover, as well. Furthermore, insuring you car for only when you drive it – certain weeks of the year only, for instance – can help to bring the overall cost down significantly.

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