Car insurance prices rise again
The cost of car insurance rose two per cent over the past three months.
That’s according to the most comprehensive car insurance price index in the UK based on more than six million quotes a quarter from Confused.com and powered by Willis Towers Watson.
This is the second consecutive rise since a brief period of softening prices which began in the third quarter of 2017. And prices are increasing at a faster rate than three months ago, when they crept up by just one per cent over the quarter in comparison. However, car insurance is still six per cent cheaper than 12 months ago.
The Confused.com research comes in the wake of investigations by the Financial Conduct Authority (FCA) and Competition and Markets Authority (CMA), which are unveiling ‘loyalty penalties’ being charged to customers who choose to stay with the same provider, rather than shopping around.
Louise O’Shea, CEO at Confused.com is urging drivers to check their renewal price and shop around to find a better deal.
She said, ‘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.
‘A recent investigation by the CMA revealed customers who stick with the same supplier for household services are facing a combined ‘loyalty penalty’ of £4.1bn 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.’
