The average price of insurance closed the first quarter of 2019 with an average premium of 581.64 euros, which represents a decrease of 4.80% (-27.92 euros) compared to the same period of the previous year, according to data from the Car Insurance Price Index carried out by Kelisto.es. In a monthly rate, March has registered the biggest drop in prices compared to the same period in 2018 (-6.81%, with an average premium of 632.29 euros), despite being the month with the most expensive prices so far of year.|
The Kelisto Car Insurance Price Index shows the evolution of the prices of the premiums in the different types of policies (third parties, extended third parties and all risks), without taking into account the coverages and services they include. This index is made from the car insurance prices obtained from the ratings or searches carried out by consumers on the Kelisto.es portal between 2015 and 2019.
As explained by the insurance website, the figures have been weighted by modality and company from more than 20 companies in the insurance market
At all risks, it shoots
Although the average price of car insurance has decreased during this first quarter of 2019 compared to last year, when analyzing each modality individually we can verify that, with the exception of third-party insurance, the rest of the policies have increased in price.
It is the one that has increased its price the most compared to the first quarter of 2018, with an increase of 4.53%, which is equivalent to a 70.35 euros more expensive premium. Between January and March 2019, the average premium for all-risk insurance stood at 1,552 euros, while in the same period last year we could find this type of policy for an average price of 1,481 euros.
Along the same lines, expanded third-party insurance has also experienced an increase in its price, although much lighter: only 1.67% compared to the first quarter of 2018, that is, 6.64 euros, which is equivalent to an average premium of 397.09 euros8 in these first months of the year.
For its part, basic third-party insurance is the only modality that has seen its price drop. In the first quarter of 2019, the average premium was 333.76 euros8, representing a decrease of 7.72% (25.78 euros) compared to the same period in 2018.
Car insurance: how to save
In order to deal with these increases in the price of your car insurance, at Kelisto.es they offer a series of guidelines and advice to save more than 200 euros on the policy per year.
• Choose the modality that best suits you: it is the first decision that will save on car insurance. Are you looking for a policy that not only protects third parties, but also covers damage to the vehicle? Then it is interesting to take out comprehensive insurance, since it is the only one on the market that offers this service. On the contrary, if the car is an old vehicle and is only used for short journeys within town or city, third-party insurance should cover only civil liability, or an extended third party if you also want to insure elements such as windows or damage due to theft or fire. In Kelisto they recommend that if it is a new and high-value vehicle, start with an all-risk policy and, over the years, switch to extended third-party insurance, much cheaper.
• Do not contract more than what is needed: in addition to paying attention to the modality, the coverage of each policy must also be taken into account. The companies offer additional guarantees that can be contracted optionally, so it is important to thoroughly review the contract to find out what your insurance covers and what it does not cover. For example, if the car sleeps in a garage and you don’t usually travel with it a lot, you may not want to take out coverage for theft. In addition, in the event of an accident, if there is a second vehicle at home, it is absurd to contract the replacement vehicle guarantee to cover the stay of the first one in the workshop.
• Being a good driver: insurers usually reward those drivers who do not report accidents or receive traffic penalties, in short, those who maintain a clean accident history. These prizes are usually discounts on the next premium or bonuses on other company products.
Comply with the rules and not have accidents, the best way to save.
• Compare the different prices: the Spanish market is competitive and offers a large number of offers, so it is not convenient to stay with the first policy or the one offered by the company of a lifetime. “Check the one that best suits you, that has the coverage you need and that the price fits your budget”, summarized in Kelisto.
Why does the insurance go up?
Although during this first quarter of 2019 there has been a decrease in the average price of car insurance, the truth is that, with each passing year, the premiums become more and more expensive. Compared to the first quarter of 2015 – the year in which the Kelisto.es Car Insurance Price Index began to be compiled – drivers have to pay, on average, 2.34% more for their car insurance, that is, 13.64 euros more. The quarter with the most expensive car insurance prices was the first of 2016, with an average premium of 629.59 euros (8.24% more than this 20196).
Not to mention that each driver (and each vehicle) is different, there are several factors that influence the price of car insurance in a general way, as explained in Kelisto.
One of the most obvious is the increase in the number of insured vehicles, since this causes traffic and, therefore, potential , to be greater. Since 2017, this car park has been increasing every year until reaching the figure of 31.31 million vehicles registered in the month of March, which has meant an increase of 4.16%.
“The upward trend in average car insurance prices is related to the growth in the number of insured vehicles. Therefore, the road accidents that insurers have to deal with have also increased, which has caused the increase in the price of premiums”, explains Virginia Cordero, from Kelisto.es insurance.
Another reason for this increase in the price of car insurance, especially in the all-risk modality, is the increase in registered passenger cars. When a driver buys a new car, it is more than likely that they take out an all-risk policy, at least during the first year, since the vehicle has more value on the market and the possible damage it may suffer can mean a significant financial outlay for the user.
In 2015, the number of passenger cars registered in Spain was 22.35 million. At the end of 2018, this figure increased by 3.24% to reach 23.07 million vehicles registered in the country. In addition, the average age of the vehicles, which according to ANFAC is already over 12 years, also makes insurers take more risk, since the older and larger the number of cars on the road, there is a greater risk of accident and, therefore, more expensive will be the insurance premiums.
“The car fleet continues to grow… and to age. Those old cars are more likely to have an accident than the new ones. People don’t get rid of old cars as easily as they used to, since there were more incentives and aid available then. This, Undoubtedly, it shows the change in trend that the sector is experiencing after years of falls in premiums.That is why, now more than ever, it is necessary to compare between the different offers in the market in order to save.Despite the fact that the increases will be a tonic generalized for all companies, it is still possible to find differences of up to 243 euros in the price of car insurance”, concludes Cordero.
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