When does (UK) car insurance drop in price?

Question

Ive been with the AA car insurance a year in sept and its £75 per month. I passed my test in June last year and am 23 now. Will the price go down any after a year Ive had no bumps etc??

Answer 1

Immediately you are 25, call around other insurance companies or go to a comparison site. You'll get a better deal straight away. After that, change your company every year and get the "new customer discount". By doing this, my daughter has seen no increase at all in her basic premium for 11 years and now has a 70 per cent no-claims discount. With respect to inflation, that represents an 85 per cent reduction in her car insurance. The only catch is that you have to stay claim-free, so drive carefully and park in safe neighbourhoods.

Answer 2

Hello,

Your insurance premium should decrease every year subject to no claims. After the first year claim free you receive 1 years no claims bonus representing 30%, 2 years is 40%, 3 years 50%, 4 years 60% and 5 years is 65% which is maximum. Once you reach 5 years you will be given the option to protect your no claims bonus which does cost extra but there are a few companies that only charge upto £50 to do so and it is worth it!!

i work for an insurance brokers and the amount of people that turn down PNCB at renewal and by the following renewal they have had a claim is unbelieveable.

The fact that you are under 25 has nothing to do with it. It depends on how long you've held you licence rather than how old you are.

Hope this helps :)

Answer 3

Most insurance policies (even thouse paid by direct debit) are annual contracts and the price is reviewed annually. You should be provided with a renewal notice in good time (21 days at least) before your policy expires advising you of the premium the AA offer for the next 12 months. This renewal notice will also (touch wood) confirm that you have one years 'no claim discount'. This discount can be transferred to other insurance companies and is worth a lot (30%+ discount).

If I were you I'd call into your local decent insurance broker as they will offer better policies than the AA and probably will not charge £25.00 for doing any adjustments on the policy.

Answer 4

Now this is just my opinion and Im not knocking insurance companies but I have been driving since I was 17 and Im 42 now and the only year my insurance went down was when I swapped my new car for an old one.
Personally, I think its scandalous and a complete rip off because they'll do anything to avoid paying out.
It is true that you get no claims discount but with inflation and all the other excuses, your insurance never seems to go down but we have to live in hope that it will.

Answer 5

Your no claims bonus will increase each year and you can keep it if you change insurers as well. When you reach 25 there should be a nice little drop for you as well.

You can impose conditions on yourself to reduce your payments, if its your own car.

Sole driver of vehicle.
Not used for work
Low milage
Female driver

etc.

Answer 6

It starts to drop significantly once you have a few years no claims and are over 30. It used to drop at 25 but that's not really the case any more.

Answer 7

Should go down a bit when you are 25 and when you have a few years no claim, but it is still very expensive, all just a money making racket.

Answer 8

It might go down a bit when you hit 25 but after that it will prob stay the same or go a little bit higher!

Answer 9

every year your insurance will go down with your no claim discount. it will also go down when you are over 25. but all the insurance companies say OVER 25 so really its when you have your 26th birthday

Answer 10

After each year without claims you should get a discount.