Our team have recently been looking at the increasing trend of haggling with insurers for a better deal.
With car insurance costs soaring at a record rate, we’re now paying an average of £788 per year for cover. Prices have shot up by 13.5% in just one year so some savvy drivers have started haggling with their insurer!
Car insurance prices have risen by 13.5% in just one year
There are several reasons being credited for a recent increase in the cost of our car insurance bills, but there’s no doubting that two recent increases in insurance premium tax (IPT) are mostly to blame.
In November last year IPT rose from 6% to 9.5%. At the start of this October another increase of 0.5% was implemented, bringing IPT to 10%. All types of insurance are hit by the increase, such as car insurance, home insurance and pet insurance.
The increase in IPT has a big affect on people who already pay an inflated premium for their car insurance, such as young drivers, drivers with convictions or people that have had their car seized and need an impounded car insurance policy. A greater amount of IPT is paid on expensive policies as it’s worked out as a percentage of the total premium.
A recent survey of 5,000 drivers in June & August his year has shown that one in five drivers were offered a lower price by their insurer by simply asking for a better deal. This can work out for insurance companies, too, as 25% of those offered a better deal decided to stick with their current insurer rather than move.
Younger drivers could benefit greatly from a little bit of haggling, with the average premium for an under 25 at an astounding £1,831. By shopping around and playing insurers off against one another there’s a good chance that a much better deal could be had.
Shopping around for car insurance is a great way to save money, but it’s important to also get quotes from providers that don’t feature on comparison sites. Once you’ve found the best priced policy you should contact your current insurer and see if they can offer a lower price to retain your business.
