While it might seem hard to believe, the price of car insurance is beginning to fall following a steady rise over the past few years. According to a recent survey, the average annual cost of car insurance has dropped by 7% year-on-year between spring 2011 and spring 2012.
The survey also shows that, on average, men are still paying £110 more for car insurance than women are; in contrast, the elderly are paying the least, at just £426 per year, and they’ve also enjoyed the biggest year-on-year fall, at 8.8%.
While the cost of insurance for young drivers has also fallen, it’s still substantially more expensive for 17-20 year old drivers than it is for any other age range. This news may not come as much of a surprise, given that the cost of comprehensive insurance has been on the rise for years now.
Gareth Kloet, head of car insurance at Confused.com, has said that “Competition between car insurance providers is currently very high. We anticipate that drivers will continue to reduce their annual mileage as a result of high monitoring costs and seek cheaper vehicles in their search for more affordable cover.”
In other words, car insurance simply became too expensive; with customers always on the look-out for better deals, it’s only natural that insurance providers such as Churchill and Liverpool Victoria have had to start decreasing their prices in order to win over more customers.