Car Insurance Pricing and Inflation

As the cost of living continues to soar for most UK families, the issue of car insurance inflation remains as topical as ever, particularly when car insurance equates to such a large percentage of average monthly outgoings. However, car insurance inflation has been rising steadily in recent times and the national average increase on premiums reached 6.9% on all comprehensive policies last year.

Amazingly, motorists choosing to fight inflation by using online brokers and price comparison websites actually managed to save up to a third on all average prices in the same period, proving that car insurance inflation can be easily tackled if drivers choose their policies by using the internet as their tool of choice.

A common mistake in the fight against car insurance inflation comes from renewing policies with the same company on an annual basis. Many insurers secure their business by offering an attractive discount when a policy is first purchased but premiums can rise steeply over the period of several years and consumers can be easily fooled into thinking they are still receiving the same discounts they earned during the first year with their insurance company.

The best tool for beating car insurance inflation is organization. Always be aware of when your policy is up for renewal as many companies will continue to take direct debit payments from customer accounts without informing them of changes in premium costs. As well as being highly unethical, the cost of car insurance inflation is cleverly hidden from the consumer and, If the premium is paid in one lump sum, the chances of retrieving payments actually becomes less likely.

A month before renewal, drivers are advised to check online broker and price comparison websites to match their forthcoming renewal price against deals from other insurers. This is the most common method of cutting the costs associated with car insurance inflation and has seen many UK motorists sitting pretty with better low-cost insurance deals.

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