Go.Compare comments on the latest ABI car insurance figures

Tom Banks, motoring expert at Go.Compare Car Insurance comments on the latest ABI tracker, out today, which shows that:

• The average comprehensive car insurance premium now sits at £635, up 1% on the previous quarter (Q4’23), indicating an easing of rises seen in 2023.
• Insurance companies continue to absorb growing costs, with the average claim paid rising 8% to reach a record of £4,800 over the same period.

“These latest figures from the ABI will no doubt be welcomed by motorists, who have been feeling the impact of premiums increasing for some time now. “In fact, our own price index for car insurance showed that the cost of car insurance had risen by 35% between Q2 2022 and Q4 2023, and the average price of car insurance was £465*. We also found that over 80% of motorists said that they have seen their insurance premiums increase this year, which is a significant number of people who have been dealing with rising insurance costs.**

“The escalating cost of car insurance premiums in the past couple of years has been widely attributed to the rising costs of replacements and repairs, as well as inflation, so it’s good news to see this is now stabilising and we will see this reduction in premiums being passed onto the policyholder. However, it also shows that the industry is working hard to keep the costs down for consumers so only time will tell if this can continue or whether we will see premiums increase again.

“There’s very little we can do as motorists to change the insurance landscape externally, but there are some things that you can do to help keep your own insurance costs down. For example, being aware of the factors that impact the price of your car insurance can really help manage costs. There are a whole range of factors insurers take into consideration when calculating the price of your car insurance and there are some simple changes you can easily make to reduce your insurance premium– buying your insurance policy 27 days before it is due to renew is an effective one.”

Go.Compare has compiled 18 tips on how to get cheaper car insurance, some of these include:

•  Watching your mileage: Statistically, the more you drive the more likely you are to have an accident. So if you drive 10,000 miles a year, your car insurance will probably be more expensive than someone who drives only 6,000 miles. While this isn’t always guaranteed, simply driving less could help you lower the cost of your car insurance and it remains important to estimate your mileage as accurately as possible.
• All in a day’s work: It may be worth thinking about how you describe your job and the work that you do. If, for example, you don't commute, you may be able to find a cheaper policy by describing your insurance as being 'for social use’.

Also, the way you describe your job can affect your premium. For example, a 'chef' might pay a different premium to a 'cook’ as even though the roles are very similar in reality, the insurers may treat them differently. But be honest or you risk invalidating your policy.

For more information, and to read Go.Compare’s report on the “Cost of car insurance”, please visit: https://www.gocompare.com/car-insurance/guide/how-much-does-car-insurance-cost/