The temporary easing of coronavirus measures over the summer has brought with it some stability to motor premiums, according to research by data insight specialist Consumer Intelligence.
After tumbling 2.5% in the two months following lockdown in March, the cost of car insurance in the UK is now on a steadier trajectory – rising just 0.1% in the last three months.
However, John Blevins, pricing expert at Consumer Intelligence, predicts pricing will fluctuate until the coronavirus pandemic is over: “Given we are still living in uncertain times and differing isolation rules up and down the country, the effect in claims volumes and severity is not surprising – and we will continue to see fluctuations until we see some sustained normality return.”
Despite the coronavirus ‘speed bump’, prices have now risen 2% in the last 12 months. The average motor premium today stands at £904.
Within the 0.1% uptick can be found a mixture of pricing movements. Younger drivers aged under 25 saw a reduction to their premiums of 0.6%, while 25-49-year-olds witnessed an equivalent rise of 0.6%. Those aged over 50, meanwhile, saw premiums slip a modest 0.2%.
The over-50s (3%) recorded the biggest increase to their premiums of any of our age groups in the last 12 months. Motorists aged 25-49 also saw the cost of their car insurance rise, albeit more modestly at 2.2%.
Newer entrants, such as By Miles – which has reported a surge in sales amid the pandemic with drivers attracted to its pay-as-you-drive insurance offering – threaten to eat into the market share the telematics sector has built up in recent years. Telematics policies, which are used primarily by younger drivers to keep insurance costs down, now make up just 58% of the five cheapest quotes for drivers aged under 25 – down from 64% a year ago.
London drivers (6.4%) saw the biggest increases to their car insurance policies in the last 12 months. East Midlands (3.9%) and Yorkshire and the Humber (3.8%) followed next, with just the South East (-1.1%) and South West (-0.8%) witnessing price falls over the same period.
|Region||Price change seen over the last 12 months
(Aug19 – Aug 20)
Last 3 months
(May 20 – Aug 20)
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.
Notes to Editors
1.The 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:
PR & Communications Manager
About Consumer Intelligence
Consumer Intelligence is data analytics company that helps businesses execute great customer strategies. For 16 years the company has been benchmarking the insurance market and retail banks in the UK and beyond. The unique combination of benchmark data, consumer research and extensive experience has helped some of the world’s major brands focus on delivering better services to customers and improving their own business performance as a result. For more information, visit the website www.consumerintelligence.com
Comment . . .