Price of car insurance drops by 11% on average in the UK

The fall in prices means an average saving of £95 for motorists

 

The price of car insurance has on average dropped by around 11%, meaning a saving of £95 for motorists in the UK.

According to data, the annual cost of car cover is dropping at its fastest since 2014 – this will be the fourth quarter in a row showing a fall in prices.

Drivers up and down the country paid on average around £752 per annum for cover during the three months up to the end of June – £16 less compared to the previous quarter AND £95 less than the same time last year.

The figures have been collected and revealed by Confused and Willis Tower Watson.

The fall in prices means an average saving of £95 for motorists

Price of car insurance drops by 11% on average in the UK.

Only recently has there been a noticeable drop in car insurance prices following an increase from mid-2014 to mid-2017 when cover rose to a whopping £847 in summer last year.

The drop in prices have been put down to the recent changes in how whiplash claims are dealt with and how large personal insurance claims are worked out.

Whilst the price of cover has dropped, motorists are still paying on average around £253 more than they were 10 years ago, when the average price of car insurance was £499.

Head of data insight at Confused, Steve Fletcher, said that despite prices continuing to drop, this last quarter saw a much slower rate compared to previous quarterly figures.

“This suggests there appears to be a correcting of the steep increases we saw this time last year, where insurers increased their premiums following the change to the Ogden rate,” said Mr Fletcher, adding: “What we are now seeing is the plateauing of increases over the past three years, and potentially the home-coming of a period of steadily decreasing premiums.”

The price of car insurance has dropped for nearly all age groups, as those aged around 68 are now paying £496 which equates to an 8.7% drop compared to the previous quarter, whilst drivers aged 17 have gained from a 5.7% drop, meaning the average price for annual cover is £1,889.

Female motorists aged between 61 and 65 are now paying the least – less than half the national average, paying just £356.

Only the Scottish Highlands and Islands saw their premiums increase on average by 1% during the last three months, whilst the rest of the UK enjoyed a fall in prices.

Motorists in Northern Ireland saw their annual cover fall on average by 4.3% to £894, whilst drivers in the East Midlands benefitted from 3.5% drop in prices to £716.

The biggest quarterly fall of 9.3% was enjoyed by motorists in Kirkwall, who are now paying £582 for cover, with drivers in St Albans paying £738 after a drop of 7.8%.

Yet in East London, car insurance is still the most expensive in the country at £1,435 even though there’s been a £14 fall in the cost of annual cover.

Drivers in Dorchester and Llandrindod Wells are the lucky ones, paying the cheapest average price for car insurance of £522 during the last three months.

 

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