Latest Research Suggests Car Insurance Getting Slightly Cheaper

As new rules on pricing zoom into view for insurers, the direction of travel for the cost of car insurance may be about to change after months of COVID-related contractions, according to insurance pricing experts, Consumer Intelligence.

Premiums have edged ever-so-slightly downwards by 0.6% in the last three months – with some UK regions even beginning to see premiums rise for the first time in over a year. The average motor premium in the UK is now £782.

Prior to this quarter and earlier in the pandemic, premiums had plummeted due to stricter COVID restrictions – when fewer cars were on the road, which had brought about a reduction in accidents and claims. Fast forward to today and insurers appear to be jostling for position in response to the new rules to tackle price walking.

Long- term view

Average overall premiums have increased 12.5% since October 2013 when Consumer Intelligence first started collecting data. Although prices are still 20% off their September 2017 pricing peak, with the COVID-19 pandemic subduing car insurance premiums for much of the last 18 months.

Age differences

In the last three months, we’ve seen something of a divergence in prices within our age categories.

Average yearly premiums for the over-50s have now risen 0.6% in the last three months. Whereas motorists aged 25-49 recorded slight declines of 0.5% over the same period, while our youngest cohort – the under-25s – witnessed much steeper falls of 2.5%.

The annual cost of car insurance is now typically £1,717 for the under-25s; this compares to £580 for those aged 25-49 and just £350 for the over-50s.

Regional differences

Premiums are beginning to tick upwards in some UK regions. In the last three months, Scotland (1.8%), the East Midlands (0.6%), the Eastern region (0.6%) and Wales (0.2%) all saw the cost of car insurance rise.

Whereas other regions continue to see prices retreat over the same period. The fastest fallers being the West Midlands (-2.1%), Yorkshire and the Humber (-1.7%) and London (-1.6%).

When looked at over a 12-month period, all UK regions have seen premiums fall – mainly due to the stricter restrictions imposed by the government earlier in the pandemic.

London drivers (£1,261) continue to be the most expensive to insure, with the North West (£1,104) following in second. The South West (£468) remains the cheapest UK region to buy car insurance.

About alastair walker 10896 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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