Over 80% of motorists have seen their insurance premiums increase this year

Go.Compare car insurance has today revealed that over 80% of motorists have seen their insurance premiums increase this year.*

The research, which interviewed over 1500 people with a current car insurance policy, found that over 80% of those who took part have seen their premiums increase. In an effort to minimise the impact of these rising costs, policyholders are taking matters into their own hands, with 55% of respondents saying they now make sure that they shop around at renewal.

A further 15% of people said that they’ve now opted to pay for their premiums monthly, as opposed to annually as they can no longer afford the lump sum up front. Another 15% said that they have increased the excess on their policy to try and save money and 8% have said they’ve been trying to cut back on things such as legal cover. 6% of people said that they’ve cut back on windscreen cover and 3% of those who took part said they’ve had to sell their car and stop driving altogether.

Tom Banks, car insurance spokesperson for Go.Compare said on the research, “It’s been widely reported that premiums have been rising in the past 12 months and this research shows just how far and wide it’s impacting people.

“While it’s good to see that so many people are now opting to shop around at renewal – which still remains one of the best ways to save on your insurance - it’s worrying to see people trying to cut back on their insurance cover. No one wants to pay more than they have to for their insurance, but cutting back on cover, or simply opting for the cheapest policy and not checking you have the cover you need, could leave you short if you need to make a claim.”

If you have found that your car insurance premiums have increased, you may be able to shop around and find a better deal elsewhere. Go.Compare has compiled 18 tips on how to get cheaper car insurance, some of these include:

• Don’t leave it until the last minute: Data from Go.Compare has revealed that the best day to renew insurance on your car is 27 days before your renewal is due.** The same data also found that the most expensive time to buy your new policy is the day the renewal is due. On average, the longer you leave it to renew your car insurance policy, the more you are going to pay.
• Consider a telematics policy: Also known as a black box insurance policy, Telematics car insurance is priced based on your actual driving habits – which could make your insurance cheaper, for drivers of any age, as long as you are a careful driver.
• 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 also affect your premium. For example, a 'chef' might pay a different premium to a 'cook’, even though the roles are very similar in reality, the insurers may treat them differently. But be honest or you risk invalidating your policy.

Tom added “Rather worryingly, the research showed that people are also increasing their excess to get a better price on their premium, with 15% of people saying they had made this choice. While this may make your policy cheaper in the short-term, it could mean you have to pay out a big lump sum if you need to make a claim."

An excess is almost always included on an insurance policy and this is the amount that needs to be paid up-front if you make a claim on your policy. With car insurance, an excess is usually made up of two parts: compulsory and voluntary. Your insurer sets the compulsory excess and the voluntary excess is the amount you choose to pay on top. Currently, any customer who has purchased car insurance via Go.Compare is offered £250 free excess cover, meaning that customers who then go on to make a claim on their car insurance can claim up to £250 pounds back. For more information on GoCompare Car Insurance’s free excess cover visit: https://www.gocompare.com/free-excess-protection-cover/ 

Tom concludes: “While premiums are on the increase, it’s more important than ever that you shop around at renewal as insurance companies will change how they price for certain risks, just because one insurance company was the right policy for you last year, it doesn’t mean it will be the same this year.”