Year-on-year, motorists are being put progressively more and more out of pocket. Put it this way: according to Gocompare.com data, in 2017, the average best premium is £963* – that’s 2% more than last year. But car insurance premiums are at a five-year high, up more than £150 than in 2014.*
A large proportion of motorists may have been exposed to those escalating prices because:
But, despite all of that, 59%* of motorists think that insurers give new customers a better deal, so why aren’t we shopping around to snap up the best prices?
You’ll never know if your insurance premiums are spiralling out of control unless you do a bit of good old-fashioned research.
Fortunately, we do the hard work for you.
Compare your car insurance and see what you can save.It’s the worst year ever to be a driver Car insurance is getting more expensive. What can you do?
In June, Insurance Premium Tax (IPT) – a tax applied to all insurance premiums in the UK – is set to rise to 12%, a leap from an already high 10% in October 2016, and will apply to all new policies taken out on or after 1 June, 2017.
In the past six years, IPT has risen four times, and doubled from 6%.
As if that wasn’t bad enough, vehicle exercise duty (VED) will ask motorists with a new, low-emissions car to pay a higher flat tax rate in the first year, and a standard rate for each following year.
For instance, in 2016 a vehicle in VED band B (emitting 101-110g/km CO2) would pay an annual £20 rate, but in 2017 that rate will be 600% more, forcing drivers to part with £140 in the first year.Don’t be a road tax April fool What is Insurance Premium Tax?
The Ogden discount rate determines how much compensation is awarded after a traffic accident.
Earlier this year the chancellor announced a change to Ogden that would further upset the bank balance of young and old drivers alike.
Drivers could experience a rise of £300 if they’re older than 65.
And, cash-strapped younger drivers will be well and truly penalised, paying up to £1,000 extra if they’re under 22.Motorists beware the wrath of Ogden Young drivers' car insurance
Despite all of this eye-opening research, Gocompare.com has discovered that 67% of drivers shrug, surrender and pay what they’re told when the insurance renewal arrives.
Less than half check how much their insurance cost the previous year and one in five didn’t read their renewal pack before committing to a policy.
Many consumers are at a standstill.
When the government is picking your pockets clean and insurers are treating your premiums like a juicy bonus, being bothered about how much it costs to renew car insurance is one of the only defences we have.
The only person that can change your policy and your premium is you.
With Gocompare.com you can compare quotes for a breadth of insurance brands and choose a policy based on your budget. Most importantly, you need to find a policy to suit your needs. The cheapest won’t necessarily offer the best value for your individual situation and driving habits, so remember to read the terms and conditions of every policy carefully before committing to a provider.Compare car insurance