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18 April 2018: Car insurance: First price drops in 3 Years

Prices of car insurance policies have fallen for the first time in three years.

This comes following changes to the law on whiplash. The way in which compensation is paid out by insurers for long term injuries has also been reviewed.

These changes have made it harder to make fraudulent claims and therefore lower the cost of insurance.

The price drop, which was suggested to have been 2% in one year, comes after three years of rising prices.

Although this was mainly credited to changes in compensation pay outs, there has also been a significant rise in the number of female drivers on the road.

A rise of 21% since 2007 was noted. Traditionally, female drivers pay less on their car insurance due to them generally having smaller and cheaper cars and claiming less for high cost accidents.

The cost of car insurance began to rise due to compensation for insurers to reduce costs of long term injury claims, were reduced. This effectively made it harder for insurers to afford pay outs to customers when they claimed, meaning costs of policies went up.

But with the government now revising this, insurance companies can again reduce their policies.

However, most people will still not see changes in costs when it comes to renewing their policy. The best option is to compare and switch policies to start benefitting and saving money.

Compare car insurance HERE

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