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2015 Off To A Great Start For Drivers - Car Insurance & Petrol Prices Have Fallen
posted on Jan 21 2015 by Kiri Nowak
If you are experiencing a case of the January blues then fear not, the year may have got off to a better start than you think, for motorists at least. Both car insurance and petrol prices have fallen.
Over the last five years motorists have had to deal with extremely high petrol prices and there hasn't been much of a change in insurance premiums. However, it looks like there has been some improvement towards the end of 2014 and moving forward into the beginning of 2015. Not only has car insurance fallen by 10% year on year, petrol prices are predicted to drop below £1 a litre across the country within weeks. So far, 2015 is looking promising.
Finally the cost of car insurance is dropping, temporarily at least. Car insurance has dropped by a huge 10% in the last year. The average cost of car insurance now stands at £540.26 according to the AA's British Insurance Premium Index. This is an excellent start to 2015 for drivers and the automotive industry.
It’s seems like car insurance is constantly going up and now finally we are seeing some positive changes. One of the reasons why car insurances has become a bit cheaper may be because there has been a crackdown on fake whiplash claims. Some people were taking advantage of other motorists and claiming whiplash when they were perfectly fine. There’s also more good news on that note, the government are putting forward plans to ban personal injury claims without a medical assessment. 'This would put off those looking for an easy cash win but would not discourage those with a genuine injury,' says Janet Connor, Managing Director of AA Insurance.
Another reason why car insurance may have fallen is due to pressure put on the industry to lower insurance premiums. The AA feel that industry price pressures have had more of an impact on pricing that policies by the Ministry of Justice that target false personal injury claims.
So car insurance prices have dropped which is a bit of a relief, but for how long? Janet Conner from the AA feels that these price decreases are unsustainable. ‘Car insurance is extremely competitive… Some insurers may have lost business by increasing premiums [in July to September], leading to a 'year-end sale' to boost market share, so car insurance is still very good value. Nevertheless, the underlying trend is upward, although I think premiums will struggle to rise past 10% by the end of the year.’ The key message here is make the most of it while it lasts.
Another big win for motorists is the decrease in petrol prices. While filling up at petrol stations recently you have probably noticed how good the prices are compared to the last couple of years. The AA reported average petrol prices dipped to their lowest level for five years, with unleaded at 108.91p.
Treasury minister Danny Alexander spoke to the Mail Online and told them the following. ‘Looking at the petrol price at the moment there is more to go. This came up at Cabinet this morning. I said that within the next few weeks we should be seeing petrol down to round about £1 a litre. That is what people should be expecting and pushing for.’ His reason for the change in price? He believes that the changes in petrol prices are because of constant pressure from the government, media and general public.
This means motorists get much more for their money and the general cost of running a car becomes more manageable. Instead of increasing again, petrol prices are actually expected to drop again in the next month, hopefully falling to below £1 a litre.
Despite these positive changes you never know what’s around the corner, so fill up on that cheap petrol while you still can.