Car Insurance Down!

Car Insurance DropMoneysupermarket have analysed 16 million car insurance quotes and proved that there’s been a recent decrease in insurance premiums in every part of the country! As insurance providers battle it out, premiums have decreased by over 10% nationally.

Motorists in Cleveland saw the biggest decrease, down 14%, followed by nearby Harrogate, and Shrewsbury. The average premium fell from £554 in April 2011 to £478.

Kevin Pratt, insurance spokesman at MoneySupermarket, confirmed:

“The main factor influencing the cost of car insurance is competition in the market. A few key insurance providers are looking to take on new business and are willing to offer low premiums to attract customers. While this continues, drivers will benefit – but there is no guarantee how long it will last.”

London drivers saw the smallest decreases, west Londoners seeing a 3% decrease. In Scotland, Falkirk and Stirling, enjoyed 13.2% decrease, but the cost of

Scottish car insurance is generally lower.

The announcement follows news that the OFT referred the car insurance industry to the Competition Commission earlier this year. The Office of Fair Trading did so after criticising insurers for charging drivers £225m extra a year to cover the inflated costs for repairs and hire vehicles. Insurers countered that an increase in whiplash injury and fraudulent claims were to blame.

Pratt added:

“Although our analysis shows that prices appear to still be falling for motorists, there are no guarantees this downward trend will continue. Those who receive their car insurance renewal soon should act quickly to benefit from the lower car insurance prices being offered. Shopping around for cover around 30-40 days before your premium expires may make a real difference to the price you’re quoted.”

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