UK motorists could be paying £2.4bn more than they need to on car insurance, says comparison site Compare the Market.
This comes as part of a report that depicts a £109 difference between the cheapest and average premium. Combined with the fact that 58 per cent of motorists hadn’t switched insurance providers in the last 12 months – despite the potential savings – results in the previously mentioned figure of £2.4bn consumers could be overpaying.
Dan Huston, head of motor insurance at Compare the Market, said: “There are still significant cost savings from switching. Motorists are paying potentially almost two and a half billion pounds more than they need to.”
On the bright side, the report also details a fall in insurance premiums said to relate to the drop in the number of new car registrations – something which has decreased by 3.4 per cent in the year to date. Premiums have now fallen to an average of £707 in Q3 2019, down from £732 in Q3 2018.
The average car insurance premium is now the lowest it’s been in three years, with the peak being in Q4 2017 when it rose to £758. This was due to a number of Government changes, such as hikes to Insurance Premium Tax (IPT), according to Compare the Market.
Huston added: “Premiums are falling which, after years of rising prices, is extremely welcome news. However, there is the chance that this apparent positive could be a wolf in sheep’s clothing if it begins to discourage consumers from shopping around.”