Car insurance up by 15% – but switching your insurer could save you hundreds

Covered mag, presented by
  • | by Kristian Dando

The AA’s annual insurance premium index seldom makes for uplifting reading if you’re a motorist, and 2012’s update doesn’t do much to buck the trend.

The average ‘Shoparound’ price (an average of the three cheapest quotes from a range of insurers, brokers and schemes) is now £971.40, a 5.4 per cent increase (from £921.38) over the three months ending 31 December.

The annual increase is 15.3 per cent (from £842.69). Simon Douglas, director of AA Insurance, is surprised that the increase was this large. "I expected a much smaller rise, especially following the small fall in premiums during the third quarter of 2011," he said.

Scott Kelly, head of car insurance at comparison site, pondered: "After a brief respite from increasing car insurance premiums the trend continues upwards and drivers are still likely to face double digit price hikes on their renewal notices. These notices often tell the customer that they don't have to do anything to remain insured as their policy will automatically be renewed. Unfortunately, not doing anything will almost certainly be of more benefit to the insurer than the customer. Motorists should never let their insurer roll over their policy for another year without first checking that their new premium is competitive.

He continued: "Drivers do not have to simply grin and bear their premiums going up. car insurance customer could save on average £394.18* by checking their renewal against other insurers so there are still considerable savings to be made by shopping around."

Now you're here, why not have a look on what you might save on your car insurance?

* Based on Online independent research by Consumer Intelligence during 01 December 2011 to 31 December 2011, average saving is achieved by 35.58 per cent of consumers