Insurance costs drop 7% but consumers need to move quickly to get the best prices

18th August 2014

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There are potentially big savings to be made on car and home insurance at the moment but customers may need to act quickly to secure a top deal.

According to trade body the British Insurance Brokers’ Association (BIBA), in the three months to the end of June premium prices fell by 4.9%, compared to the same period in 2013. But with the present inflation rate at 1.9%, this means consumers in real terms – where the cost of living is taken into account – are saving 6.8% on home and motor insurance.

BIBA’s research has found that costs paid in its consumer insurance ‘shopping basket’ over the 12 months have continued to reduce.

Steve White, chief executive of BIBA, said: “We’ll watch household premiums with interest to see if the slowdown in the reduction of premiums is a one-off or whether the downward trend will continue.”

Commenting on the figures Lee Griffin, of price comparison site Gocompare.com, said that while right now there has never been a more competitive insurance market, he added that questions remain whether this trend, especially in car insurance will continue.

He said: “Some say that the decreases have bottomed out, therefore it’s even more important than ever to shop around to ensure you’re getting the best possible deal, as it’s likely that some insurers will be cutting rates to attract new customers.”

Griffin advised that it is especially important for those whose policies are coming up for renewal to get online and ensure they are getting the best cover for the best possible price, as it is unlikely that their current insurer will reward their loyalty with a cheaper premium.

He said: “When it comes to insurance, loyalty doesn’t always pay and the best rates tend to go to new customers, so comparing quotes from lots of insurers is the best way to ensure that you’re getting a good deal on the policy that’s right for you.”

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