If facts and statistics are to be believed then it was discovered that young drivers pay the highest car insurance costs in the UK. According to independent research, the increasing premium cost along with hikes in Insurance Premium Tax play a vital role in adding to the car insurance cost. However, what pushes the boundaries is the unwillingness of young drivers to shop around and sticking to the same insurance provider year after year.
While insurance providers leverage on the auto renewal of motor insurance policies, the drivers are showing a real laidback attitude towards searching for cheaper quotes. In fact, the gap between the cheapest policies and the average cost of insurance is found to be £123 – the highest since 2012. This gap may rise further provided the drivers keep showing reluctance towards shopping around for motor insurance deals.
Experts also predict a further rise in IPT in the year 2017, taking the premium costs to a higher level. In recent times, it was observed that there was a £20 price hike in December 2016 which totals around £608 and £30 increase in average car insurance cost which was calculated to be £738. The savings variable has also increased from 15.8% in the beginning of 2016 to 17.6% in December 2016.
The best trick to reduce car insurance cost – Shop around!
One of the best ways to cut down on insurance costs is to shop around and compare car insurance quotes provided by insurers across the UK. Moreover, the cheapest policies may not be the best for you and your vehicle, so, it is best to check for policies that are reliable and more beneficial even if they charge a bit more than the cheapest deals. Apart from shopping around, you can slash the premiums by choosing cheaper car models, installing a Black box and mileage reducing features in your car.
As per statistics, if you are a young motorist who stops the auto renewal cycle and shops around then you can save around £350 a year on your motor insurance.
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