‘Short-term dip’ in the costs of car insurance

Car insurance premiums have dipped for the first time in more than three years, but the respite for drivers will be of short duration, the analysis suggests.

Prices fell 1%, or £9, in the third quarter of the year compared with the previous three months, according to the web site of comparison of prices Confused.com.

That is to say, the more competitive the premiums of the sierra drivers are paying an average of £838 a year for full coverage.

Early indications suggested that the prices were starting to rise again, he said.

The typical premium was much higher than the £737 drivers will be paid by comprehensive car insurance a year ago.

“What is worrying is that there is every possibility that the car insurance prices will be the most expensive on record during the first half of next year,” said Amanda Stretton, racing, the editor of the Confused.com.
How to get car insurance cheaper
The underwriters of the victory in the battle of the payouts

The recent fall was the result of the changes made by insurers after their partial victory in a battle over how to personal injury payments are calculated.

In March, the government introduced a new formula for the calculation of compensation payments to those suffering long-term injuries, the insurance companies said that he was going to raise their costs and, in turn, premiums.

After the consultation by the Ministry of Justice and the Scottish government, a new draft was published in September that was going to change the way the so-called discount rate is calculated.Deadlines

Apart from the research suggests that some drivers are constantly faced with higher costs because of the way they paid for the insurance.

Another comparison website, GoCompare, found that one of the “typical” annual car insurance premium of £498 converted at a total cost of £597 as the monthly payment.

It was suggested that the 38% of drivers paid by your car insurance by monthly instalments,

Georgie Frost, director of consumer affairs at GoCompare, said: “When you pay monthly, you truly not pay by your insurance, you are paying a loan that comes with interest charges.

“Not only will you pay more because the credit, but our research shows they are less likely to change in the future if you pay monthly, and that could end up costing you even more each year.”