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As the ABI report record high premiums Gocompare.com says “Stop paying the loyalty tax!”

03 February 2017

According to the latest data from the Association of British Insurers, the average comprehensive car insurance premium hit a record high of £462 – a 4.3% increase on the previous high record of £443 in 2012*.

Commenting on today’s figures, Matt Oliver from Gocompare.com Car Insurance said; “While insurers say there are several reasons behind rising car insurance prices, which include rises in IPT and increased whiplash claims, people shouldn’t take these rises lying down.

“With car premiums hitting a record high, it’s now more important than ever to make sure you’re not getting a raw deal at renewal. Loyalty doesn’t pay when it comes to car insurance, with the best deals nearly always going to new customers. This means it’s unlikely you’re being offered the best possible price on your renewal letter.

“Don’t just accept higher premiums, instead use your renewal as a prompt and challenge yourself to get online and find a better deal than the one your insurer is offering you. Drivers could save as much as £286** by comparing quotes online, so if you’re one of the 64%*** of people who haven’t switched their provider in the past 12 months, stop paying the loyalty tax and start saving.”

Top tips from Gocompare.com on getting the best insurance deals:

• Give yourself time to review your financial arrangements, keep a diary note of key dates including car and home insurance renewals;

  • NEVER accept insurance renewal quotes without first checking that the new price you are being offered is competitive;
  • Compare prices AND check the small print.  Make sure you’re making like-for-like comparisons and understand all the charges, any penalties, exclusions and terms and conditions you will be required to meet, and that the product is right for you;
  • Use a comparison website – they provide quick and up-to-date information on a wide range of financial products and services.
  • Insurance premiums are based on both the driver and the vehicle. While you can’t change factors such as age or how long you’ve been driving, you can control other factors. For example, adding a more experienced driver to your policy, increasing your excess or cutting your mileage.

- ENDS -

Notes to editors:

*Source: ABI average motor insurance tracker – in the last quarter of 2016 the average price paid for private comprehensive insurance was £462. Highest figure previously recorded was £443, in Q2 2012

** Based on Online independent research by Consumer Intelligence 01 July - 30 September 2016; 51% of customers could save up to £286.44 on their car insurance

***On 6 January 2017, Bilendi conducted an online survey among 2001 randomly selected British adults who are Maximiles UK panelists.  The margin of error-which measures sampling variability-is +/- 2.2%. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of United Kingdom. Discrepancies in or between totals are due to rounding.  The 2016 switching survey was also an online survey conducted by Bilendi among 2001 randomly selected British adults who are Maximiles UK panelists, it was conducted on 5 January 2016.