2017 was another tough year for motorists, with an overall increase of 9% reported in the average car insurance premium. The Association of British Insurers’ Motor Insurance Premium Tracker found that drivers are now paying an extra £40 on their premium, with an overall average policy now costing £481.
Who is most affected by rising car insurance premiums?
Record high pricing for insurance is highlighted even further for young drivers, who now spend 10% of their salary on car insurance – that equates to the first 37 days of the year in pay.
Overall, car insurance prices have increased by 29% since ABI started tracking premiums in 2012.
ABI’s findings are supported by Confused.com’s price index which found the increase to be 8% in 2017. The highest increase happened in the first quarter of 2017, when an 11% increase was reported compared to the same period in 2016. That equates to a £48 hike in outgoings.
Can car insurance premiums be controlled?
The ABI has proposed changes to current insurance practices to the government including
- Freezing the insurance premium tax at 12%.
- Tackling the rise in lower value claims, like whiplash.
- Introducing a fairer system for personal injury compensation awards.
What can you do to manage your premiums?
While it seems that the cost of insurance only continues to rise, there are a few things you can do to reduce the impact on you.
At All Med Pro we work with medical and dental professionals to get the right insurance at the right price.
Tips to help ensure you choose the right cover and don’t pay over the top for your car insurance premium are generally the same as for managing all your insurances.
- Check your renewal quote and shop around to compare prices. This also gives you the opportunity to check your cover and make sure your circumstances have not changed.
- Check your policy cover level. Do you need any of the extras included? Extras add costs so consider if you need that hire car. You might have some options, such as breakdown cover, already for example through your bank account.
- Balance your premium cost with excess. Your premium will go down if you choose a higher excess. Consider what you would reasonably be happy to pay as an excess in the event of a claim. You can get a quote with a few variations to see what would be the most cost effective for you.
- Work with a broker to find you the right cover. While the right cover might not always be the cheapest, it will serve you the best in the event of a claim. A broker knows what questions to ask you and can help make sure you understand fully the implications of what your policy covers. They will help you make an informed decision about excess values and if to include extras.
- Consolidate your insurances with one provider. Often a broker can apply discounts for having various insurance policies from them. Speak to your broker about your options.
If you are a medical or dental professional, the specialist team at All Med Pro can help you find the right cover for a number of different risks, including car insurance.