Brighter news on the horizon for car insurance premiums…

Whilst car insurance prices have sored over the past two years it would seem there may be some brighter news on the horizon.
The latest data indicates that premium increases have dropped to just under 10% at the year ending August 2024 and whilst still an increase over last year this compares with increases of over 34% for the twelve months recorded to May 2024.
The reduction in increases is not restricted to particular areas of the country with most of the UK seeing a reduction in the average cost with the over 50’s benefitting the most.
Londoners, however continue to bear the brunt, with average premiums increasing by over 15%. The cost of cover in the capital is typically higher due to increased claim rates, vehicle crime, and elevated garage costs.
The past two years has seen the UK’s leading car insurance companies wrestle with skyrocketing inflation and energy prices, which impacted the cost of vehicle repairs. Many insurers are now reporting an easing of claims inflation in half year results, although claim costs continue to impact profitability.
More insurers are fighting for the perceived safer risks, with this competition driving down prices for the over 50s and as claims inflation becomes more under control it is hoped that competition for other risk profiles will see further reductions.
The best advice as always is to shop around, but remember, be careful to compare the cover levels as well as the price.
Ashbourne Insurance can search from a range of different insurers to obtain cover tailored to your specific needs at a price to suit your budget.