Car and home insurance premiums are at a four-year low, according to new MoneySuperMarket research, which means your next renewal could be cheaper than last time
But it’s still as important as ever to shop around for the best price every year!
Even if your current insurer has trimmed a few pounds off your premium, there could be bigger savings to be had elsewhere – with no need to compromise the quality of protection you enjoy.
That’s because insurers tend to reserve their best prices for new customers as they battle for share of the market. And the simple act of shopping around for our car insurance and home insurance makes you a new customer every time.
What’s happening to prices?
According to 49 million quotes run on MoneySuperMarket between April 2010 and March this year, the average car insurance premium is now £390. When prices peaked in the second quarter of 2011, the average premium was £545, which means there’s been a huge drop of 28%.
Home insurance premiums also sit at a four-year low, averaging at £126 – their lowest since MoneySuperMarket’s analysis began in 2010.
Here’s a look at why prices are falling, and why it’s just as important as it’s ever been to make sure you’re getting the absolute best price on your cover.
Maximise your savings
Clare Francis, editor-in-chief at MoneySuperMarket, said: “It’s the first time since we began monitoring market pricing in 2010 that we’ve seen both car and home insurance premiums fall this steeply across the country. This is great news for households struggling with the high cost of living and could help ease some of the pressure on the purse strings.
“Competition among providers is continuing to drive down the cost of car and home insurance policies and it’s important that consumers take advantage of this. Sticking with your existing insurer is unlikely to net you the best deal.
“Even though your renewal quote might be cheaper than the price you paid last year, chances are you will be able to save even more by switching to a different insurer so it is really important to shop around if you want to maximise the savings available to you.
“Finding the best deal on car and home insurance is quick and easy to do, and consumers stand to pocket up to £220 and £70 respectively* using MoneySuperMarket.”
North of the border
Our analysis has revealed stark regional differences for motorists.
For example, drivers in Carlisle have seen the most benefit, compared to this time last year, as their premiums have fallen by 15%. Motorists in Truro and Galashiels were almost equally fortunate, as their average premiums fell by 14%, year on year.
Car insurance buyers in Perth and Galashiels have the cheapest premiums overall, with annual cover typically costing £231 and £232 respectively.
In fact, Scotland fared well overall, as six of the top 10 cheapest locations for cover are north of the English border.
Cheaper home cover
The entire country benefitted from cheaper home insurance premiums, as costs fell across all 121 postal regions over the past 12 months – according to analysis of more than 11.8 million home insurance quotes run between March 2010 and February this year.
Home insurance premiums fell by 21%, nationally, while Bolton recorded the steepest drop in average premiums, falling by 19% (£26) over 12 months. Hull and Crewe also did well, benefitting to price drops of 14%.
The average cost of combined buildings and contents cover fell by 19% between 2011 and February this year to £142.
Don’t be wooed
As Clare Francis explains, just because your car or home renewal quotes might be lower this year than last year – it doesn’t mean they’ll be the absolute cheapest prices available to you.
Don’t be wooed by slightly lower prices from your current insurer – instead, take 10 minutes to compare prices using our car insurance and home insurance comparison services, and cut your insurance bills even furthe
Insurance premiums at 4-year low
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