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Elinor Zuke
By
June 28, 2018

Car Insurance Premiums Go Into Reverse

car premiums go into reverse

  • Average prices drop 5.5% in year to £712
  • Under-25s are the biggest winners with a 11.9% cut in bills

Car insurance premiums have gone into reverse with drivers seeing price cuts of 5.5% in the past 12 months, new analysis1 from insurance research experts Consumer Intelligence (CI) shows.

Its data shows average bills have dropped to £712 with the price cuts accelerating since bills hit a record high September last year and falling for eight straight months as insurers compete for business.

Under-25s are the biggest winners with bills falling by 11.9% as they benefit from the continuing growth of black box technology — so-called telematics which rewards safer driving.

Around 61% of the most competitive policies for under-25s are now offered by telematics providers. However younger drivers pay an average £1,635 a year compared with £413 for over-50s and £629 for motorists aged between 25 and 49.

All parts of the country are seeing premiums drop although the decrease in Scotland was marginal at 0.1%. However, Scots pay the lowest average premiums of £522 which is nearly half the annual bill of £1,024 in London.

But average car insurance bills are still 21.9% higher than in October 2013 when Consumer Intelligence – whose figures are used to calculate official inflation statistics first started collecting the data.

John Blevins, Consumer Intelligence pricing expert said: “Insurers are now free to compete on price without Insurance Premium Tax increases or changes to the Ogden rate which sets compensation for major personal injury claims.

“That is very welcome and should provide some relief for drivers when other motoring costs such as petrol prices are on the rise.

“The downward trend should continue with the increasing adoption of telematics helping to maintain the momentum. It’s interesting that around 23% of all the most competitive quotes are now from telematics providers.

The table below shows the average premiums across the country. Prices are falling fastest in the North West at 9.5% a year although drivers pay the second highest bills at £847.

REGION

AVERAGE PREMIUM (FIVE CHEAPEST)

PRICE CHANGE IN YEAR TO END-MAY

London

£1,024

-5.2%

North West

£847

-9.5%

West Midlands

£810

-6.6%

North East

£814

-3.9%

Yorkshire & The Humber

£729

-5.8%

East Midlands

£678

-6.4%

Eastern

£618

-4.5%

South East

£594

-6.0%

South West

£564

-6.3%

Wales

£541

-2.5%

Scotland

£522

-0.1%

GREAT BRITAIN

£712

-5.5%


 


Insight that will enable you to optimise your pricing strategy 

Download our Car Insurance Price Index to gain insight into market movements, benchmark the major van insurance brands and help you understand the data behind the results. 

 

DOWNLOAD INDEX



Ends

Notes to Editors

¹The cheapest premiums were calculated by comparing the prices offered for 3,600 people by all the major Price Comparison Sites and key direct insurers. The top 5 prices for each person were compared to the previous month’s top 5, then these variations averaged to produce the index.

 

For further information, please contact:

Consumer Intelligence
Elinor Zuke
07863 350270

Kevan Reilly / Jonathan Flint
Citigate Dewe Rogerson
020 7638 9571


About Consumer Intelligence

Consumer Intelligence conducts consumer surveys and benchmarks price and service performance providing unique insights into competitor pricing and customer experiences, their attitudes, opinions and behaviours. For more information, visit the web site www.consumerintelligence.com


 

 


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