Almost two-thirds of loyal motorists who stick with the same insurer are not benefiting from recent cuts in the cost of insurance, new research has revealed.
While car insurance typically stands at £752 now, which is £95, or 11%, cheaper than it was a year ago, price comparison site Confused.com’s analysis of six million quotes found that 62% of those who renewed with their existing insurer between April and June 2018 missed out on price cuts and saw their annual premiums go up by £49 on average.
Confused points out that drivers could save up to £613, on average, if they shop around for a new policy 21 days before their renewal date and could pay an average of £651 for their car insurance. Leave it to the renewal date, and the comparison site says you could pay almost double, at £1,264.
Male drivers are also spending, on average, £92 more than women on their car insurance because they tend to drive more expensive cars with larger engines and newer technology so they make higher-value claims.
When it comes to age, younger drivers have seen car insurance prices fall dramatically, with 17-year-olds seeing a £403 price drop year on year. Confused says this is likely to be due to more telematics insurers specialising in 17-year-old drivers entering the market. Yet they are still paying a whopping £1,889 a year for car insurance. This is actually less than 18- and 19-year-olds pay, at £2,052 and £1,893 respectively.
However, male drivers aged between 17 and 20 are paying the most of any age group – at £2,294 on average, compared to the £1,660 paid by women drivers of the same age. Meanwhile, female drivers aged between 61 and 65 are paying the least at just £356.
According to the research, almost two-thirds (61%) of drivers say they are fed up with the rising cost of car insurance, with, 30% saying that it’s becoming unaffordable.
Louise O’Shea, chief executive at Confused, says: “While prices are decreasing, drivers can still save money. Even if their renewal price is cheaper than the amount they paid the previous year, it is highly likely that there will be another insurer out there who will offer a better rate.”