Car Insurance Savings variable
Today, the average quarterly premium – blended across all age groups – has fallen to £709, a decrease of £27 compared to £736 in the previous quarter. A reduction in car registrations could also have caused providers to compete in a shrinking market.
Meanwhile the Savings Variable in March – May 2019 has narrowed over the past three months to 15.64%, down from 15.84%. The savings variable has remained significantly lower than its peak of 17.62% in the first quarter of 2017. The large difference between the average and cheapest premium two years ago suggested that drivers were failing to shop around, resulting in a reduction in competition.
This latest small decrease in the savings variable follows from two successive months of increases. As savings variables are experiencing a downwards trend, drivers may be assured that competition within the car insurance market appears to be again on the rise. However despite downward pressure on prices, the fact remains that drivers are still facing far higher motor insurance premiums, especially if they fail to shop around.