Car insurance costs are going up fast – and insurers are saying it’s because we’ve got the cheek to actually compare prices before buying
The rising numbers of car owners looking for the cheapest deal every year means there is now less point in firms offering motorists introductory loss-making insurance prices – as customers aren’t staying with their existing provider when the introductory price ends – according to the report from the AA.
The typical quote for someone shopping around for a comprehensive policy in the second quarter of 2016 has increased by around £12.50 compared with the first quarter and around £84 compared with a year earlier.
On average, comprehensive car insurance cover now costs £568, according to the figures from the AA’s insurance premium index.
Michael Lloyd, director of insurance at the AA, said: “Increasing numbers of car owners shop around for their cover every year, especially at a time when premiums are going up.
“As more people look for introductory offers there is less incentive for companies to offer loss-making prices to attract new customers that will, a year later, go elsewhere. So I believe this is one reason of recent premium increases.”
Who’s worst hit ?
Young drivers aged 17 to 22 years old, who already pay the highest premiums of any age group, saw the biggest jump in the cost of their cover over the last quarter, with 3.5% or £42 added to a policy, taking the average cost to around £1,240.
Drivers aged over 70 saw the smallest quarterly increase, with a 1.2% upswing taking their average premium to £452.