Latest Insurance Posts

Featured Posts

Filter By Categories
Catherine Carey
By
September 21, 2018

Car Insurance Price Cuts Speed Up

car index press release

  • Average prices drop 9.1% in year to £766
  • Telematics policies help drive the reduction in bills

Car insurance price cuts are speeding up with drivers seeing premiums drop by 9.1% in the past 12 months, new analysis1 from data analytics experts Consumer Intelligence (CI) shows.

Its data shows average car insurance bills have fallen to £766 with black box technology — so-called telematics which rewards safer driving adding to the increased competition across the market.

Under-25s are the biggest beneficiaries and can expect annual premium quotes of £1,608 after prices fell 15.4% in the past year. The over-50s only saw prices drop 6.8% in the past year but they have the comfort of annual bills of £392.

Across the market 22% of all the top five cheapest quotes came from telematics providers. For under-25s around 60% of the most competitive policies are telematics while just 7% of the most competitive for over-50s are telematics.

All parts of the country are benefiting with the biggest annual price cuts in the North West at 14.9%. Drivers in London still see the highest annual bills at £1,150 more than double the lowest at £510 in Scotland.

But premiums are still 20.4% higher than February 2014 when Consumer Intelligence whose figures are used to calculate official inflation statistics first started collecting the data.

 

John Blevins, Consumer Intelligence pricing expert said:

 

The trend in quoted premiums is down which may be partly due to insurers passing on the anticipated benefits of whiplash reforms now.

“It’s another sign of the increased competition for business and it is likely premiums will continue to fall unless there are any major shocks in claims or tax rises.

“The influence of telematics is a major factor with increased use of it by the over-50s and a 3% rise since March according to our data.

“Generally over-50s experience the biggest price rises as a percentage and the smallest price cuts so older drivers should explore telematics if they want to beat the demographic trend.


The table below shows the average premiums across the country. Prices are falling slowest in Scotland at 3.8% a year and price cuts are also below the national average in London, the North East and Eastern England

 

REGION

AVERAGE PREMIUM (FIVE CHEAPEST)

PRICE CHANGE IN YEAR TO END-AUGUST

London

£1,150

-7.9%

North West

£970

-14.9%

North East

£826

-7.7%

West Midlands

£803

-9.2%

Yorkshire & The Humber

£800

-9.2%

Eastern

£742

-6.4%

East Midlands

£714

-10.0%

South East

£626

-9.8%

Wales

£571

-9.5%

South West

£557

-9.5%

Scotland

£510

-3.8%

GREAT BRITAIN

£766

-9.1%

 

  


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
Catherine Carey
PR & Communications Manager
07823 790453

 

Citigate Dewe Rogerson
Kevan Reilly / Jonathan Flint
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


 

Post a comment...

 


Subscribe to newsletter

Subscribe