Car insurance SHOCK – Millions could still overpaying by making this £116 mistake

Millions of motorists are potentially overpaying for their car insurance by making a simple error.

New research has suggested that car insurance premiums are continuing to increase for both the cheapest and average policies.

Average car insurance premiums rose in Q4 2018 by £12 to £744 compared to £732 in the previous quarter. This marks a £33 premium increase over the course of three months.

Over the past five years premium costs have increased significantly from £347 in Q3 2014 to £628 this year, reveals in its latest Premium Drivers report.

The data suggests that average premium costs have risen 41 per cent since Q3 2013 when it stood at £526.

Prices have fallen slightly in the compared to 2017 dropping £13.

Shopping around can save motorists hundreds of pounds and is one of the simplest ways of slashing the cost of insurance cover.

The difference between the cheapest and average premiums stood at £116 in Q4 2018 and up to £324 for young drivers

Dan Hutson, Head of Motor Insurance at, said: “Motor insurance is still a significant expense for British motorists.

“Prices have fallen slightly over the past 12 months but drivers are still paying hundreds of pounds more to insure their vehicle than they were three, or even five years ago.

“However, the potential saving of £116 gives motorists some hope.

“As premiums have risen, so too have the potential savings to be made.

“The only way to mitigate these rises and encourage competition amongst providers is for consumers to shop around every year.

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“The spiralling cost of insurance is thanks in part to hikes to Insurance Premium Tax which has doubled from 6% to 12% since 2015.

“This is a costly tax, passed on to customers by insurers, and disproportionately hits young people who already pay, on average, over £1,000 to insure their vehicle and stay on the road.

“We are urging the government to redress the balance and scrap or cap IPT for young drivers.”

Daily Express :: Cars Feed