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Highest auto insurance prices in history, up for two-thirds of drivers

Zebra’s 2020 report provides a comprehensive analysis of 73 million auto insurance rates from 418 insurance companies in 34,000 U.S. zip codes to examine trends that impact rates at the national, state, and local levels.

“With auto insurance becoming more expensive, it’s important that drivers know what goes into their rates. Yet for most people it is a mystery why some drivers pay. $ 500 per year while others pay $ 5,000, “said Nicole beck, Director of Communications and Licensed Insurance Agent at The Zebra. “The ‘why’ is a mix of factors: the weather in your area, your credit score, the way you drive, and more. But the bottom line is that drivers actually have more control over what they are doing. pay than they think. “

Auto insurance is more expensive than ever
Annual auto insurance premiums are up for 63% of drivers in the United States, with some markets now surpassing $ 6,200 – four times the national average.

Most expensive states:

  • Michigan: $ 3,096
  • Louisiana: $ 2,379
  • Florida: $ 2,309

The most expensive cities:

  • Detroit, Michigan: $ 6,280
  • Flint, Michigan: $ 3,901
  • New Orleans, LA: $ 3,735

Insurance costs rise for some, stagnate for others
Factors such as geography, susceptibility to weather events and the impact of state insurance regulators have dramatic impacts on prices.

  • After Texas rates rose sharply for two years following major storms and hurricanes, the state saw a dramatic 20% drop in rates in early 2020.
  • Detroit the average annual premium is $ 6,280. Greenville, North Carolina the average annual premium is $ 819: a difference of 667%.
  • As of 2011, 44 states and Washington DC saw a price increase, but seven states saw a slight decline. Hawaii saw the biggest drop in premiums, with rates falling 5.5% since 2011.

Insurance is at a technological turning point
Zebra’s research reveals that technology is playing a bigger role in auto insurance pricing – and the trend will continue over the next decade.

  • Insurers have started to sharply increase rates for drivers distracted by phones or other devices while driving. Insurance prices jumped 23 $ more per year in 2015 for a distracted driving offense, to $ 185 per year for the same offense in 2016. The premium increase in 2019 is $ 355.
  • Accident prevention technology has made cars safer, and more expensive to repair after an accident. As a result, drivers see little discount for having these features in their vehicle.

To see the State of Auto Insurance Report 2020 to explore how gender, credit score, age, popular cars, teenage drivers, and all rating factors affect insurance costs by state and zip code.

In addition, B-Roll assets can be downloaded here and used with credit to The Zebra or TheZebra.com.

About the zebra
The Zebra is the nation’s leading independent insurance comparison site. With its dynamic real-time quote comparison tool, drivers can identify insurance companies with the coverage, level of service, and pricing tailored to their unique needs. The Zebra compares over 100 auto insurance companies and provides agent support and educational resources to ensure drivers are equipped to make the most informed decisions about their auto insurance. Based at Austin, Texas, The Zebra has sought to bring transparency and simplicity to insurance purchases since 2012 – it is “insurance in black and white”.

SOURCE The Zebra

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The best way to buy auto insurance online – Times Square Chronicles


This is the best way to save some money when looking to purchase auto insurance online. Today, this article offers you the best way to consider purchasing auto insurance on the Internet. We’re going to show you the number of discounts you need to look at and show you the best way to get good auto insurance as well as the various websites that you can easily come across before closing.

After going through them all, you will be confident enough to purchase your next policy with the use of the web. It will be well protected with your knowledge that you have purchased auto insurance from the best company at the most profitable rate.

Why choose an online insurance platform?

You can choose one of three ways to get the best coverage for your car. You can use the Internet, or go ahead with local brokers for insurance and phone call use. If you really want coverage for your car, you can choose one of the three methods or just use all of them. But you have to keep in mind that when using a phone to call the insurer, it takes a long time.

It also consumes a lot of time and effort when you visit local brokers in their offices. Online would be the best way to get the best auto insurance policy and it can be done quite easily. You don’t have to go anywhere to look for one because you can contact the insurance company right from the comfort of your home. All you need to know is the best way to get one.

Discounts to take into account

You will come across a myriad of discounts that you should be aware of while you are purchasing your coverage. Several companies offer at least 10% off which you must do when choosing one on their websites. In the case of members of certain professional associations as well as trade unions, discounts are also granted within the framework of their quota. The best discount would be the one that would allow you to be the safe driver and not have been involved in any accidents.

Types of websites you should check out

You will surely come across several types of websites when browsing different types of auto insurance coverage online. It is very important for you to get quotes which would guarantee the price offered to you and whether they are competitive or not. Also make sure that you visit an auto insurance comparison website for compare Amica and Geico auto insurance also because they are quite easy to use and effectively save your time and money.

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The worst – and best – jobs for auto insurance prices have been revealed


When insuring your car, there are many factors that need to be taken into consideration to keep the price down.

One of the most important factors is your job title.

It has been proven time and time again that your career can have a huge impact on how much you end up paying to insure your vehicle.

While you might expect footballers to pay a lot for insurance, you might be surprised to learn that two of the lowest paying professions rank in the top five when it comes to premiums.

MoneySuperMarket has analyzed seven million searches for auto insurance quotes to find out who pays the most – and the least – when it comes to covering a vehicle.

The results were as follows:

The professions paying the most to insure their cars:

  • Footballers – £ 1,978 per year
  • Athletes – £ 1,511 per year
  • Fast food delivery drivers – £ 1,291 per year
  • Scrap metal shredders – £ 1,286 per year
  • Apprentices – £ 1,243 per year

The professions that pay the least to insure their cars:

  • Supervisors – £ 252 per year
  • Newspaper delivery drivers – £ 268 per year
  • Retired – £ 270 per year
  • Curtain makers – £ 278 per year
  • Concierges – £ 283 per year

Along with your job title, when you renew your insurance can also have a huge impact on its final cost.

According to money saving expert Martin Lewis, if you renew your auto insurance at the last minute, it could cost you hundreds of dollars.

And, if you renew on the same day, it could increase your premiums by an astronomical amount – some premiums even dropping from £ 672 to £ 1,218 (an increase of £ 546).

The price increases were seen when Martin’s Monet Saving Expert website reviewed over 50 million car insurance quotes from four separate insurance websites and found the cheapest and most expensive times to claim.

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Martin explained: “It works like this because the most important factor in insurance pricing is ‘actuarial risk’, which means that the price is dictated by the probability of claims, based on data from the loss history of millions of drivers, some of which, including car type, address and occupation, are well known.

“Yet the regulator, the FCA, recently reported that there are 50 to 400 different factors, many of which are hidden.

“This ‘days before renewal’ fold is one of those factors. Insurers have admitted to us that simply drivers who leave until the last minute are statistically riskier, so they pay more. Of course, by revealing this, it There is a chance that we are “subverting future risk charts, as some riskier drivers may now do so sooner.”

He continued, “But even if we were to move the market so much, it would probably take years to factor in, and we will continue to redo the analysis.”

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Bad news for Greater Manchester drivers as car insurance prices rise

Car insurance; Shutter ID number 569376109

There is bad news for drivers in Greater Manchester, as new data shows the average cost of car insurance has risen over the past 12 months.

However, research shows savvy drivers can combat these increases by shopping.

New figures reveal Manchester drivers now pay £ 1,005 for their car insurance, on average, after an increase of £ 41 (4%) in 12 months.

That’s according to Confused.com’s latest auto insurance price index, powered by Willis Towers Watson. Based on over six million quotes each quarter, it is the UK’s most comprehensive car insurance price index.

Oldham drivers have been hit the hardest by the increases, as the price of car insurance in the region has climbed £ 73 (7%) in 12 months. This means that drivers in this area can now expect to pay £ 1,164 for their car insurance, on average, making it the most expensive area outside of London.

These increases are mirrored across the UK, with figures showing the average car insurance price is now £ 783, following a £ 23 (3%) increase in the past year.

The data comes in the wake of an interim report from the Financial Conduct Authority (FCA), which exposes “double pricing” practices that inflate premiums for loyal customers who renew year after year, many of whom are vulnerable.

According to the FCA report, insurers are offering cheaper prices to new customers in order to win their market at the expense of higher prices for loyal customers. But if insurers are forced to balance the way they price customers, it could see prices for new customers rise even more. This is why Confused.com urges drivers to shop around for the cheapest price.

Evidence of this behavior was found in other research from Confused.com, which found that 43% of UK drivers who received their renewals in the last quarter (July to September) were charged £ 53 more, on average . Even if, worryingly, 38% continued to renew with the same insurer, despite the price increase. Most (94%) made the decision not to change on the grounds that the price increase was not significant.

Research has also shown that people stay loyal in the hope of being rewarded. However, this is clearly not the case. According to the study, drivers stay with their insurer for an average of three years. In fact, nearly one in ten (7%) admits to staying with their insurer for more than 10 years. But he also pointed out that the switch can save money, with those who shop on a price comparison website saving an average of £ 61.

But the FCA has raised concerns that consumers who choose to auto-renew with their current provider are paying higher prices for their insurance than they would if they were shopping. And insurers target those customers who are less likely to shop with higher prices. As a result, the FCA emphasized the need to shop around, saying that “many consumers who change or trade their premium can get a good deal.” And this applies even if the increase is only minimal.

Amanda Stretton, automotive editor at Confused.com, echoes the FCA’s findings and urges drivers to shop around because there’s a good chance another insurer might want your business.

The FCA is expected to release the full report in early 2020 and is exploring measures to shed more light on insurance pricing. But in the meantime, Confused.com is urging motorists to take matters into their own hands and shop around for a better price. To further incentivize drivers, the company is giving them the option to save even more by guaranteeing to beat their auto and home insurance renewals, or by giving them the difference, plus £ 20 (2).

As auto insurance prices start to increase year on year, drivers will see the difference in their renewal price, although some more than others. In particular, female drivers are bearing the brunt of the increases, having seen prices soar by £ 29 (4%) from 12 months ago. The average female driver can now expect to pay £ 737 for her car insurance, on average. However, it remains significantly cheaper than male drivers, who pay £ 821 by comparison, after an average price increase of £ 19 (2%) year over year. This brings the gap between the two to £ 84, on average (3).

Although it is not just female drivers who pay the largest increase. Younger drivers were hit hardest by the increases. In particular, prices for drivers aged 23 are now £ 45 (4%) more expensive than 12 months ago. This means that drivers of this age will now pay an average of £ 1,306 for their car insurance. Likewise, the average price for 19-year-olds increased by £ 42 (2%) in 12 months to reach £ 1,938. According to data, this is one of the most expensive ages for car insurance, surpassed only by 18-year-olds who pay £ 2,067 on average.

As auto insurance prices rise, drivers can breathe a sigh of relief as the spur of other auto costs begins to ease. Fuel, in particular, fell slightly after a sharp increase at the start of the year. Since May, the UK average gasoline price has fallen by 2p per liter, while diesel prices have fallen by 3p. Confused.com’s fuel price index shows that gasoline now costs 127.9 pence per liter and 131.5 pence for diesel (4). But if the prices are falling for the moment, these prices remain extremely high compared to the last years. And trends suggest that the cost of fuel may soon accelerate, leaving motorists with another costly burden.

Amanda Stretton, Automotive Editor at Confused.com, comments, “For drivers, purchasing auto insurance is a must. And it’s really disheartening to know that prices in Manchester and Merseyside are more expensive than at this time last year. And given recent auto insurance pricing surveys, the situation could only get worse if new measures mean insurers are raising prices for new customers.

“FCA has found that loyal customers are overvalued when renewing. But it really shouldn’t be. Customers should be rewarded for their loyalty.

“Until the FCA puts measures in place to protect consumers, we need to do everything we can to ensure that we are not paying more than we should for auto insurance.

“Always shop around, even if the price for your renewal is cheaper or the same. There will likely be another insurer who wants your business.

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Tesla wants your auto insurance business. It may not save you money


If Tesla has your car loving heart, now it wants your auto insurance business.

The electric automaker has entered the insurance industry with a program in California – its largest market – and plans to expand to other states in the future.

While the company says its rates could be up to 20% cheaper than the prices of other insurers – even 30% in some cases – early reports from Tesla owners suggest some drivers are getting higher quotes than theirs. current coverage elsewhere, experts say. .

“While it is entirely possible that Tesla could offer significant savings, it is not clear whether the current [owners] will be able to take advantage of it immediately, “said Mark Fitzpatrick, auto insurance analyst at personal finance website ValuePenguin.” I believe Tesla will continue to refine its insurance program before rolling it out nationwide.

Tesla model 3

Silas Stein | image alliance | Getty Images

A Tesla spokesperson said a few bugs were found in the algorithm used for pricing policies for some customers and this has been fixed.

Tesla began offering the new policies in late August through Tesla Insurance Services, which is licensed as an insurance agency in California. Tesla CEO Elon Musk said on an April earnings call that an insurance option through his company would be “more compelling than anything else.”

Current Tesla owners can get a quote online through their existing account with the company. Policy management and the claims process will be handled by Tesla Insurance, while State National Insurance is the underwriter – the entity taking on the financial risk of Tesla policies.

Tesla officials did not respond to a CNBC request for specific policy quotes.

Tesla Insurance is also taking steps to become a full-fledged insurer, which would also mean being able to underwrite its own policies. Tesla’s spokesperson declined to comment on when or if it would mean venturing into other areas of coverage, such as home or life.

Teslas tend to be more expensive to insure, largely due to the cost of repairing them. Collision coverage is between 57% and 65% of the cost of a policy, according to ValuePenguin.

In California, the average cost of an insurance policy for a Model 3 – the cheapest Tesla with a 2019 base price of $ 35,000 – is $ 1,913 per year, with a full and collision deductible of 500. $, according to ValuePenguin’s survey of three insurers (State Farm, Geico and Progressive).

Insurance is higher for more expensive models: on average $ 2,473 per year for Model X (2019 base price of $ 81,000) and $ 2,963 for Model S (2019 base price: $ 75,000 ).

Tesla argues that because it knows more about its cars, technology, and repair process, it can offer cheaper policies. It also reduces some costs, like commissions, which are common with auto insurance policies sold through other insurers.

While Tesla’s policies will be discounted for the car with an autopilot function, other discounts that can be applied are common in the industry.

Musk has talked about having access to all kinds of data, but right now they’re not really using it.

Matt timmons

Research Analyst at ValuePenguin

“Discounts for multiple policies, or for being a good driver or having an anti-theft device, are not specific to Tesla,” said Matt Timmons, ValuePenguin research analyst.

And although anonymous and aggregated data is currently used to help price California policies, the company does not use or record data from individual vehicles, such as GPS or vehicle camera images.

Regulatory documents and comments from company executives suggest that Tesla may wish to use individual driving data to establish pricing policies, if drivers agree and the laws of a particular state allow it.

Where permitted, some insurance companies already offer policies that use so-called telematics – direct data from your car about your driving habits via a specialized device or smartphone app – to potentially offer benefits. additional discounts for prudent drivers (those who avoid excessive speeds, hard braking, etc.).

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Tesla’s spokesperson said the company plans to incorporate more types of data into its insurance offerings over time, but declined to provide further details.

After the news of the company’s planned move to insurance in April was announced, Warren Buffett, chairman of Berkshire Hathaway, said Tesla would likely struggle to enter the insurance business – something the company Buffett is investing heavily.

Musk endorsed the idea that automation in cars would lower insurance prices. However, in 2017, several insurance companies increased their rates on Tesla cars, claiming they generated more claims and were more expensive to repair.

That year, the company partnered with Liberty Mutual in the United States to offer InsureMyTesla, intended to offer cheaper policies to drivers. Tesla says the program is available in international markets such as Europe and Asia.

The switch to auto insurance complements Tesla’s preference to deal directly with consumers and eliminate middlemen in the car ownership experience. For example, it does not have franchised dealers and sells directly to consumers, which has prevented it from selling its cars in states that require a third party (i.e. a dealership) to sell all vehicles. vehicles.

Whether Tesla’s foray into insurance is successful remains to be seen, Timmons said. He said California places more restrictions on insurance companies than some other states, which would generally make it less attractive for an insurance startup.

“I think his success is still an open question in California,” Timmons said. “There is a disproportionate number of Tesla drivers in the state, which is why they start there, but Tesla doesn’t get as much flexibility in pricing as they offer as they would in others. States. “

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The market gained more than 3% in September;  186 small caps jump from 10 to 119%

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Initial Public Offering 165 170.78 – 181.13 0 150.07 09-21 23-09

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Third-party auto insurance prices to increase from June 16

The increase in civil liability insurance rates is applicable for cars with a cylinder capacity of less than 1500cc only

  • Rising prices will affect both new and existing car owners who renew their insurance policies.

  • Price increase of Rs 222 (12%) for cars under 1000cc.

  • Price increase of Rs 358 (12.5%) for 1000-1500cc cars.

  • No change in the third party premium for cars over 1500cc.

The Insurance Regulatory and Development Authority of India (IRDAI) has decided to increase the price of third party car insurance premium (private vehicles) from June 16, 2019. The increase in third party insurance will affect both new car buyers and existing owners who renew their insurance coverage.

The part of the premium to the third of an automobile insurance is fixed and does not change with the change of IDV (insured declared value). At present, the third party premium is set at Rs 1,850 for cars with an engine capacity of up to 1,000 cc. This amount is expected to rise to Rs 2,072, an increase of Rs 222 (12%) from June 16.

Renault Kwid

Likewise, the third party premium for cars with a cylinder capacity between 1000cc and 1500cc will increase by Rs 358 from June 16, 2019. At present, the third party premium for these cars is set at Rs 2,863 and in the future, this amount will increase. to Rs 3,221, an increase of 12.5%.

Toyota glanza

It should be noted that the third party premium for cars with a displacement greater than 1500cc is not going to change. At present, the fixed amount of the third party premium for these cars is Rs 7,890.

Classification of cars (private vehicles) for insurance purposes

Current third party premium

Third party bonus on June 16, 2019

Engine capacity not more than 1000cc

Rs 1,850

Rs 2,072

Engine capacity greater than 1000cc, but not more than 1500cc

Rs 2,863

3 221 rupees

Engine capacity over 1500cc

7 890 rupees

7 890 rupees

It is now compulsory to take out liability insurance for a minimum of three years for each new car. There would therefore be a minimum increase of Rs 666 as a third party bonus when purchasing a new car with a displacement of up to 1000cc. Likewise, the increase in the liability insurance premium for cars with a cylinder capacity between 1000cc and 1500cc will be Rs 1,074. All in all, the increase in the third party premium is not high enough. so that we suggest that you prepare either the purchase of your new car or the renewal of your insurance.

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South Wales car insurance prices rise by £ 10 in three months

The post-Christmas pinch is made worse for motorists in South Wales as new data shows the cost of car insurance in the region has risen in the past three months.

The cost of car insurance in South Wales has increased by + 1%, equivalent to + £ 10 in three months, with motorists in the region now paying £ 704 on average. This is according to the UK’s most comprehensive auto insurance price index, based on over six million quotes per quarter from Confused.com and powered by Willis Towers Watson.

While this increase may seem small, prices appear to be accelerating at a much faster rate than three months ago, when the cost of car insurance rose by £ +1 (+ 0%) in comparison (Q3 2018 ), after four consecutive quarters. of decreases.

However, the current price of insurance in South Wales is still -43 £ (-6%) cheaper than 12 months ago, despite the increases seen this quarter (Q4 2018).

To help area motorists see how these increases impacted their own premiums, Confused.com created a auto insurance calculator (opens in a new window). The tool allows users to enter their region, age and gender to see the average cost of premiums for their demographic, compared to 12 months ago

Confused.com Auto Insurance Calculator Result Example

Motorists in Newport will particularly feel the effects of these increases, as it turns out to be the most expensive area in South Wales for car insurance. Motorists in the region pay £ 719, after an increase of + £ 23 (+ 3%) in the quarter, on average.

These increases reflect the direction in which car insurance prices are heading across much of the UK. According to data, the cost of car insurance in the UK has increased by + 2% in the last three months – equivalent to + £ 14 – to reach £ 774 on average.

This is the second consecutive increase since a brief period of price slowdown that began in the third quarter of 2017. And prices are rising at a faster pace than three months ago, when they only increased. by + 1% (+ £ 8) in the quarter (Q3 2018) in comparison. While car insurance is still -6% cheaper (- £ 53) than 12 months ago (Q4 2017), with the acceleration of the rise in prices, the worst could be yet to come. to come.

It appears that motorists who stay with the same insurer are already starting to see these increases reflected in their renewal prices. A nationally representative survey of UK drivers found that over half (57%) of motorists who renewed their car insurance in the last quarter (October – December 2018) saw their premium increase by £ 48 when they opened their renewal notices, on average, because insurers don’t reward loyal customers. However, worryingly, more than half (56%) of the drivers who renewed their insurance in those months stayed with the same insurer, suggesting they didn’t look for a better deal elsewhere.

The Confused.com study follows investigations by the Financial Conduct Authority (FCA) and the Competition and Markets Authority (CMA), which reveal “loyalty penalties” imposed on customers who choose to stay with the same supplier, rather than shopping. And with the post-Christmas pinch starting to tighten and the UK in a time of economic uncertainty, Confused.com is urging drivers to check their renewal price and shop around for a better deal.

As prices start to rise at a steady rate, motorists will feel the pinch when purchasing auto insurance, although some are more so than others. In particular, car insurance is more expensive for men of both sexes, with the price differential for UK male and female drivers increasing to almost £ 100. The cost of car insurance for male motorists increased by + £ 15 (+ 2%) in the quarter, bringing the overall average to £ 817. This opens the price gap for men and women to a difference of + £ 98 since the last quarter (Q3 2018), with women paying £ 719 in comparison, on average. That’s + £ 11 (+ 2%) more than they paid three months ago.

While the EU Gender Directive prohibits insurers from rating a driver based on their gender, there are other risk factors that cause men to pay higher premiums. For example, men tend to drive more expensive cars with bigger engines and loaded with new technology, on average, resulting in higher value claims. They also tend to have a lot more driving beliefs than women, as Confused.com’s “Gender Gap in 100 Drivers” research points out. However, it is not clear whether these laws will remain after Brexit, which could lead to a widening of the gap to the same scale as before the introduction of the EU Gender Directive, where men paid up to to £ 121 more for their car insurance (Q4 2011).

As the cost of auto insurance increases for the majority of motorists, older drivers experience the increases more than others. In particular, 68-year-old drivers in the UK saw the biggest quarterly increase in the cost of their insurance, with the average price increasing by + 8% – or + £ 41 – in the last three months to reach £ 544. It’s just – £ 22 less than the most expensive price paid by drivers of this age in the third quarter of 2017. Motorists aged 59 and 67 have also seen their car insurance costs rise significantly this quarter, both ages seeing an additional + 7% last quarter price, equivalent to + £ 35 and + £ 30 respectively.

However, not all motorists will have seen these increases when submitting auto insurance. In particular, the price of auto insurance for 17-year-olds actually fell to the lowest since 2006, providing some breathing space for young drivers and potentially new drivers. The average cost of car insurance for motorists this age has fallen by – £ 349 (-16%) year over year and – £ 98 (-5%) over the past three months, but still remains an exorbitant amount of £ 1,855.

As auto insurance is on the rise, motorists will breathe a sigh of relief as auto costs such as fuel prices have fallen, making January a little more bearable. The cost of fuel across the UK started to rise rapidly during 2018, but has declined significantly since October, according to Confused.com’s fuel price index. Gasoline in particular has become more affordable, dropping from 131p / l in October to 123p in December, on average. Meanwhile, the price of diesel has fallen from 137p / l to 132p / l over the same period, providing some breathing space for motorists as auto insurance prices continue to weigh on drivers.

Amanda Stretton, Automotive Writer at Confused.com comments:

“Auto insurance prices are picking up steam and increasing in South Wales for the second quarter in a row – and this quarter we have seen prices rise at a much faster rate. It’s the last thing drivers need as they face the post-Christmas squeeze and as the UK enters a period of economic uncertainty due to Brexit.

“If there’s a time to rethink and refresh your finances, it’s now. A recent CMA survey found that customers who stay with the same supplier for household services face a combined ‘loyalty penalty’ of £ 4.1bn per year. And with an impending FCA investigation into “hidden” discrimination among auto insurance customers on the horizon, the problem with loyalty penalties appears to be bigger than we initially thought.

“Our own research shows that some customers pay the price to stay loyal to their insurer, their renewal price being higher than the previous year. Disturbingly, many motorists renew without even trying to shop.

“All motorists should be looking for the best deal, whether they are a new driver or renewing for the tenth year, because there is always another insurer ready to give you a better deal. At Confused.com, we are certain that some motorists will be able to find a better price than what their current insurer offers that we offer to beat their renewal quote or give them the difference, plus £ 20 (4).

“Please don’t pay more than you have to pay – take a few minutes to check your renewal letter and get a cheaper price.” “

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Auto Insurance Prices Start To Rise Again | Latest news


Auto insurance price declines are slowing, but drivers still benefit from an 8.5% drop in the past year, according to new analysis from insurance data analysis firm Consumer Intelligence.

Its data shows average car insurance bills have fallen to £ 757 with telematics, which rewards customers for driving safer by making a major contribution to containing costs.

There are signs, however, that premiums are starting to rise – average prices have risen 0.3% in the last three months for all drivers and 1.3% for those over 50. Bills across the market are 20.6% higher than five years ago when Consumer Intelligence started collecting data.

Premiums continue to fall for those under 25 and they can expect quotes 14.7% lower than last year, despite paying the highest bills at £ 1,544. Those over 50 pay the lowest average bills at £ 395, although prices have fallen only 6.2% in the past year.

Across the market as a whole, 20% of the five cheapest offers came from telematics service providers, with those under 25 most likely to benefit. About 59% of the most competitive contracts for them are telematics against 13% for drivers aged 25 to 49 and 5% for those over 50.


Nationwide, the biggest price drops are in the North West at 12.6%, but they are paying the second highest bills at £ 915. Only London drivers pay more at £ 1,155 while motorists in the South West have the cheapest offers at £ 519, slightly ahead of Scots at £ 538.

John Blevins, Consumer Intelligence pricing expert, said: “The past three months have seen a slowdown in price drops and premiums have even started to increase slightly in most regions.

“Telematics makes a major contribution to controlling prices, especially for those under 25 who benefit from more tailor-made pricing based on good behavior.

“If older age groups want more control over premiums and avoid general price hikes according to their age, they could take a look at telematics policies.”

The table below shows the average premiums across the country. Prices fall most slowly in the east of England at 3.8% per year, but drivers in the region pay the third lowest annual average bills at £ 634.


North West


£ 915

Yorkshire and Humberside


£ 737



£ 658

South West


£ 519

South East


£ 702

East Midlands


£ 646

West Midlands


£ 835



£ 699



£ 1,155



£ 538



£ 634



£ 757

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Want to buy auto insurance online? Prepare for a bumpy ride


From clothes to airline tickets, it’s easy to shop for just about anything online. But one purchase remains difficult to buy online: auto insurance.

It can be difficult to directly compare the prices of several insurers, especially the bigger brands. Estimated quotes may differ from final prices. And when buyers are ready to buy, sometimes they’re taken offline to complete the purchase over the phone.

The percentage of U.S. households purchasing auto insurance hit an all-time high last year, according to RELX Group’s LexisNexis Risk Solutions. But only about a quarter of American drivers who bought auto insurance made their purchase online, according to a JD Power survey.

Even fewer buyers (less than 5%) used a price comparison site to view quotes side-by-side, according to a 2016 survey by research firm Finaccord, a division of Aon PLC. This is in stark contrast to the UK, where more than 40% of buyers who changed car insurers or bought car insurance for the first time used comparison sites, according to the Finaccord survey.

Buying online is “not the best way for everyone to purchase insurance today,” said Karlyn Carnahan, manager of the P&C insurance practice for the Americas at Consultant Celent, a unit of Marsh & McLennan. Cos. “The experience is very unsatisfactory for a lot of people.

Here’s why :

Larger companies will not participate

The first challenge for consumers is that it’s hard to find all the information they need in one place online. To get quotes from each of the major auto insurers by market share, buyers need to visit multiple websites and complete a different form on each.

Why? Because some of the biggest US insurers, including State Farm and Geico of Berkshire Hathaway Inc., won’t share their plans with price comparison sites.

“Geico’s pricing plans are proprietary,” said a spokesperson.

“We see the purchase of insurance as something that has to be considered beyond the price,” said a spokesperson for State Farm.

This resistance has slowed decades of startup attempts to make it easier to buy insurance online in the United States. companies that identify potential customers for insurers and agents to contact. A new generation of startups have raised hundreds of millions of dollars more this decade, only to face the same hurdles.

“The list goes on and on of companies that were going to be the ‘Insurance Kayak’,” said Bill Daniel, managing director of All Web Leads, which operates sites such as InsuranceQuotes.com. But “the guys who have all the power of the brand aren’t interested in comparing their rates.”

Industry watchers believed price comparison shopping might become more popular in 2015, when internet giant Google launched its own insurance comparison site. But Google Compare stopped a year later. At the time, Google said its comparison service “had not been as successful as we were hoping”.

Analysts say Google probably didn’t want to compete with auto insurers who pay to advertise on its search engine.

Progressive Corp., the country’s third-largest auto insurer by market share, offers online estimates of competing carriers on its website. Progressive also shares its pricing information with some comparison sites, but not all.

“We try to make things as easy as possible,” said Tammy Loucks, head of direct comparison experiences business at Progressive.

Your information could be sold

Another complication for consumers is that many price comparison sites are lead generators, which means they sell buyers’ contact details to insurers and agents.

The price they receive ranges from $ 2 to over $ 20 per lead, depending on market participants.

What do buyers get in return? Typically, they receive two to three quotes, one to three emails and two to five phone calls, according to a survey this year by Clearsurance, an insurance review site. Buyers who viewed the number of calls or emails as too high were less likely to use the price comparison site again, the survey showed.

Lead-generating businesses say they help buyers find insurance companies effectively. But some in the industry question whether the practice benefits consumers.

“It’s nothing more than a garbage arbitrage game, where someone buys your information once and sells it 10 times,” said Keith Melnick, managing director of insurance comparison site Zebra. , which last year stopped selling leads. Rather, Zebra relies on revenue generated from ad clicks and commissions for insurance sales.

Insurance is complicated

The terms and coverage of insurance policies may differ slightly from company to company and each state has its own rules. Some buyers prefer to finalize their purchase with the help of an agent to ensure they are purchasing the correct amount of insurance.

Another twist: the estimated prices shown by online price comparison sites may differ from the final price. Buyers sometimes misrepresent or omit facts when purchasing insurance, research finds, meaning the final quote could change dramatically after an insurer checks a buyer’s credit score and driving record. Buyers may also find that they need more or less coverage than the standard listed price.

The price listed is the final price approximately 60% of the time, according to the Clearsurance survey.

“Imagine going to Expedia and picking a hotel, then checking out and the price goes up by $ 100,” said Keith Moore, CEO of price comparison site CoverHound. “This is the world of insurance.”

Write to Nicole Friedman at nicole.friedman@wsj.com

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