New research claims cover prices have fallen by £13
According to new research, car insurance prices in the UK have dropped for the first time in three years, with cover falling by £13.
The average policy is now costing customers £768, however motorists are still having to pay around £97 more than they were two years ago.
The price of car insurance policies in the UK have been dropping for a whole 12 months and this is the first time such an unvarying decrease has been identified in three years.
Car insurance prices in the UK drop for the first time in three years
Currently the average cost of a policy is around £768, dropping by £13 (2%) since the end of the first quarter last year.
And in the first quarter of 2018, the price of a motor insurance policy dropped quite dramatically, falling by £59 (7%).
Those benefiting the most from the drop in prices are younger drivers, as 17-year-olds are now paying £118 less than they were having to pay last year and £201 (9%) less than they would have had to pay for a policy just three months ago. Despite this, insurance for younger drivers remains expensive, with 18-year-olds having to pay on average £2,114 per year for cover.
Many motorists though have noticed their insurance policies have increased compared to 12 months ago. Drivers in the Scottish Borders saw their insurance creep up by £32 (6%) and motorists in central & north Wales saw cover increase by £10 – an average policy now costing £629.
The fall in prices is mainly down to the recent crackdown on fraudulent whiplash claims but also because of a forthcoming review by the UK Government of the discount rate.
“Finally drivers have had some good news with the end of rising car insurance costs in sight,” said chief executive Louise O’Shea at Confused.com, who are the ones responsible for noticing the recent drop in prices after looking at its quote index.
Despite the fall in prices though, insurance still remains relatively expensive, with drivers paying on average around £97 more than they did two years ago and a whopping £261 more than they would have been paying a decade ago!
Mark Wilson, chief executive of Aviva Insurance, believes that the whole car insurance market is “dysfunctional”, with many providers tempting new customers in with low prices at the expense of loyal customers, who end up paying more for their premiums to make up the shortfall.
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