Car insurance premiums were at the highest in Q4 last year, it has been revealed.
The Confused.com car insurance price index revealed that premiums have increased by two per cent (+£14) compared the previous quarter. This took average fully comprehensive premium prices to £774.
The index, which is based on over six million quotes, stated that despite the rise average prices were still -£53 cheaper than they were in Q4 2017.
Certain fluctuations in prices cannot be controlled, however, it is apparent from the research that motorists are still causing their premiums to rise by making some errors.
The most common of these mistakes is be letting the premium rollover and renew automatically.
A nationally representative survey of UK drivers found more than half (57%) of motorists who renewed their car insurance in the last quarter (October – December 2018) saw their premium go up by £48 when they opened their renewal notice, on average, as insurers fail to reward loyal customers.
Over half (56 per cent) of drivers who rented their premium over this period of time stuck with the same insurers, failing to seek a better deal elsewhere.
These ‘loyalty penalties’ are needlessly costing drivers every single year.
Louise O’Shea, CEO at Confused.com comments: “Car insurance prices are gathering momentum and have increased for the second quarter running – and this quarter we have seen prices rise at a much faster pace.
“This is the last thing drivers need as they face the post-Christmas pinch and as the UK enters a period of economic uncertainty due to Brexit.
“If there’s a time to re-think and refresh your finances, it’s now. A recent investigation by the CMA revealed customers who stick with the same supplier for household services are facing a combined ‘loyalty penalty’ of £4.1 billion a year.
“And with an impending FCA investigation into ‘hidden’ discrimination between car insurance customers on the horizon, the loyalty penalty issue appears to be wider than we first thought.
“Our own research reveals some customers are paying the price for staying loyal to their insurer, with their renewal price coming in more expensive than the previous year. Worryingly, many motorists are renewing without even attempting to shop around.
“All motorists should be shopping around for the best deal, whether they are a new driver or renewing for the tenth year, as there is always another insurer out there willing to offer you a better deal.
“At Confused.com, we are so certain motorists will be able to find a better price than their current insurer is offering that we are offering to beat their renewal quote, or give them the difference, plus £20.
“Please don’t pay more than you have to – take a few minutes to check your renewal letter and get a cheaper price.”