Quoted car insurance premiums fall but not for younger drivers

• Average quoted premiums drop by 1.1% – the first fall in nearly three years – but increase by 12.2% for under-25s. 

• In October, motorists most commonly received a quote between £500 and £749, Consumer Intelligence data shows. 

Quoted car insurance premiums have dropped for the first time in nearly three years, with a 1.1% decrease. However, younger drivers are still experiencing increases, according to the latest Consumer Intelligence Car Insurance Price Index¹. 

The last time motorists, on average, saw lower competitive premiums than the previous year was in January 2022. However, under-25s saw quoted premiums rise by 12.2% in the year to the end of October. 

The over-50s and drivers in Wales are benefiting the most, with quoted premiums down by 9.1% for both older drivers and motorists in Wales. Scotland was the only region to record a rise in quoted premiums over the past three months, and it, along with London and the South West, also saw increases over the past 12 months. 

Drivers most commonly received a quote between £500 and £749, with 23% of quotes falling in this range and 22% between £250 and £499. Data shows that 57% of drivers could obtain a quote for less than £750 in October this year via price comparison websites, compared with 50% last year. However, significant age differences remain: 78% of over-50s and 52% of those aged 25 to 49 were able to do so, compared with just 21% of under-25s. 

“October marked the first time motorists on average saw lower competitive premiums than the year prior since January 2022. There has been a divergence in premium trends with the youngest drivers continuing to see inflation ,” says Max Thompson, Insurance Insight Manager at Consumer Intelligence. 

“Scotland saw an increase in competitive premiums despite the announcement that the Personal Injury Discount Rate would move from -0.75% to +0.5% which should lower the cost of large injury claims and in turn premiums. A review into the rate is underway in England and Wales and should be completed in January at the latest,” adds Thompson. 

Long-term view 

Average quoted premiums have risen by 117.0% – more than doubled – since October 2013 when Consumer Intelligence began collecting data. 

The over-50s have seen the largest increase, with premiums rising by 145.5%, while the under-25s have experienced the smallest rise at 44.8%. Drivers aged between 25 and 49 have seen average quoted premiums increase by 137.7%. 

Age differences in the past year 

Under-25s saw quoted premiums rise by 12.2% over the past 12 months, including a 4.2% increase in the past three months. This is in stark contrast to over-50s, who experienced a 9.1% decrease in quoted premiums over the past year and a 4.9% drop in the past three months. Meanwhile, drivers aged 25 to 49 saw more modest changes, with quoted premiums falling by 0.5% over the past year and by 1.9% in the three months since July. 

Telematics 

The proportion of rank one to five quotes from telematics providers dropped to 13% in October, down from 15% in July. 

The drop in competitiveness was felt most acutely by younger drivers, with 35% of rank one to five quotes for under-25s provided by telematics providers, compared with 39% in July. For those aged 25 to 49, the proportion slipped slightly from 13% to 12%, but it increased for over-50s from 5% to 7%. 

Regional differences 

All regions recorded falls in average quoted premiums over the past three months except Scotland, where costs rose by 1.5%. Scotland also saw a rise in quoted premiums over the past 12 months, along with London and the South West. 

The biggest fall in average quoted premiums over the past three months occurred in Wales, with a 5.3% decline, while the smallest reduction was in the East Midlands, at 1.3%. Over the past 12 months, Wales also recorded the largest drop, at 9.1%, followed by Yorkshire & The Humber, at 6.1%. 

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