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Average cost to insure a vehicle reduced!
The price on average of insuring a vehicle in the United Kingdom has fallen by £100 over the last year, new figures have recently revealed.
As part of the latest British Insurance Premium index, the AA has said that the average premium of insurance has fallen by approximately £30, or just over 5%, in the first part of the year alone.
The company has dropped down to a war in price between different insurance providers, along with stricter rules such as dealing with whiplash claims that were brought in later on last year. The price on average of comprehensive cover in 2014's first quarter was £531, which was taken from a combined analysis of price comparison sites and brokers. This represents a 5.6% reduction, which equates to £31 from the quarter before and 16.6%, which is £105 on the same quarter from the year before.
The premiums for Young drivers saw the biggest reduction with a drop on average of 10% in the 17-22 age category. The average premium for insurers for new drivers is just over £1,100.
Simon Douglas who is the director of AA insurance recently said in a statement that it is the price war that is these unprecedented falls driver, some insurers could then pull out sectors of the market that is less profitable because of this. He explained that Fraud adds about £50 to each car insurance policy cost and people should expect premiums to rise again this year until the fraud issue can be dealt with properly.
There were tougher rules brought in last year on dealing with fraudulent whiplash claims to deal with what has been referred to as the compensation culture of motoring.
The results are still very good news for drivers. A spokesman for the AA recently said in reports online that for people who are renewing their insurance, they are in a strong position to negotiate cheaper quotes or to look around. Though it is important to remember that cheapness does not necessarily represent good value for money, people need to be sure that they are getting the right insurance cover for what they need.