Motor insurance premiums have fallen – here's why that's not all good news
After reaching dizzying heights in 2017, motor insurance premiums have dropped slightly – but the fall is not all it seems.
The average price paid for private comprehensive motor insurance hit a staggering £491 at the end of 2017.
Stats for the first few months of 2018 show that premiums have now fallen slightly to £478 - marking the first quarterly fall in premiums in two years.
BUT – and unfortunately there is a but - despite prices being down overall, they are actually higher than normal for this time of year.
In fact, £478 is the highest that premiums have ever been in the first quarter of the year.
Premiums are up by £14 compared to the same period in 2017, according to the Association of British Insurers.
Why are premiums down? And will they stay that way?
Unfortunately, one of the main reasons premiums are down is simply because of the time of year.
Rob Cummings, ABI’s Assistant Director, Head of Motor and Liability, said motor insurance was subject to seasonal trends.
Average motor insurance premiums usually fall in the first quarter of the year due to the new car registrations in March, which leads to more demand for motor insurance and more competition.
“While this small fall in the last few months gives some relief to motorists, it is in line with seasonal trends and the underlying cost pressures from things like personal injury claims remain," Cummings said.
The ABI said it would not speculate about what would happen to insurance premiums in the year to come, but in January Cummings said the rising cost of motor insurance showed "no sign of abating".
If you're worried about your premiums going up, why not get a quick price comparison.
Customer cuts his car insurance premium from £560 to £260
Stephen Allison, from North Yorkshire, couldn't believe it when he received his last premium.
"I had been with Churchill over 20 years and [they] quoted me £560!"
Stephen went on A Spokesman Said and got a better quote of £260.
Follow Stephen's example and see how much you can save by switching insurers.
When did you last switch your car insurance provider?
Last year 65% of customers didn't switch their car insurance to try and get a better deal.