Call us sad, but we always look forward to the arrival of the quarterly AA Index at Gocompare.com.
This quarter’s edition had some good news for motorists – on average, car insurance prices have fallen by 1% in the first quarter of 2015, and almost 6% over the past 12 months.
It’s been going this way for some time now – after years of spiralling costs, laws brought in by the government to curb the very factors which were driving prices up (spurious personal injury claims, mainly) have seen premiums drop, and that trend has continued this year. Customers have also become more engaged with their insurance, with shopping around becoming more and more commonplace, meaning that insurers have had to be more competitive with their pricing.
But even though cheaper insurance is out there, not everyone is taking advantage of it.
Loyalty, unfortunately, is seldom rewarded when it comes to car insurance, and people who stick with their insurer through thick and thin are the ones who're most likely to miss out.
Astonishingly, over a third of people haven’t switched for three years, according to research here at Gocompare.com in December 2014 – meaning that hundreds of thousands of people could be paying much more than they really should be for their insurance.
The market is still very competitive, with some insurers offering cheaper premiums to win business.
However, the fact remains that you can’t be sure that your existing insurer will pass on this price drop, or offer you the best possible deal for your circumstances when it comes to renewal.
The only way to be sure you’re not paying over the odds for your insurance at renewal is to get online and compare quotes from lots of different providers.
These low prices won’t stick around forever, so make sure you’ve locked yours in for another year by shopping around.