Rising insurance premiums coupled with motorists not shopping around for the least expensive car insurance deal is costing young motorists in Britain over £350 a year, new research has found.
Data analysis by comparethemarket.com found that insurers are taking advantage of motorists automatically renewing their policy without looking around for a more affordable quote. The gap between the least expensive policy and the average price paid for insurance has now reached £123 – the highest considering that 2012.
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With buyers not taking advantage of the best deals, the gap could rise additionally in the future, too. experts foresee insurance premiums rising in 2017 as a result of the recent insurance premium tax hike from 10 to 12 per cent by the Government.
The month of December alone saw the least expensive and average insurance prices go up by £20 and £30 respectively, with the least expensive policy now costing £608, while the average price of car insurance is now £738.
The figures also showed that the ‘savings variable’ – a percentage showing the difference between the average and least expensive policy – has grown from 15.8 per cent in January 2016 to 17.6 per cent in December the same year across all premiums.
Young motorists have the most to get by shopping around
The research highlighted that young motorists are particularly likely to lose out the most, as those aged between 17 and 20 on pay on average £352 a lot more than they should, while older motorists pay substantially less. motorists aged between 65 and 79 were found to pay just £42 a lot more for their insurance.
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Dan Bass, head of motor insurance at comparethemarket.com said: “The cost of motor insurance at the moment is an unwelcome gift for motorists. Jumping from £708 to £738 is a pretty large increase. The potential savings of £130 shows that renewal prices and least expensive price quotes are getting additionally and additionally apart, which may suggest that insurers are increasingly counting on customer inertia.”
“The only way to alleviate these rises and encourage competition among providers is for consumers to shop around.”
Do you shop around for the least expensive policy before renewing your insurance? tell us in the comments below…