Car insurance continues to rise in cost as EV repair, salvage infrastructure, the number of uninsured drivers and other factors help to drive up insurer costs. But the rate of inflation appears to be slowing, here are some highlights from the Confused research;
Comprehensive car insurance premiums have fallen by 5% (£54) during the last three months, with UK motorists now paying £941 on average, according to the latest Confused.com Car Insurance Price Index.
Although the data shows a fall in prices during the first three months of 2024, car insurance premiums still recorded an annual rise of 43% (£284), according to the longest established and most comprehensive car insurance price index in the UK. The index is based on price data compiled from over six million customer quotes per quarter.
Tim Rourke, UK Head of P&C Pricing, Product, Claims and Underwriting at WTW, said: “After a series of record highs in 2023 took car insurance premiums into uncharted territory, the latest pricing data suggests the relentless rise in prices may finally be turning a corner. Even with inflation easing, however, more vehicles with advanced technology that require complex and expensive repairs and higher rental vehicle costs, increased frequency and severity of claims and ongoing supply chain issues risk a perfect storm of issues that can be expected to continue to put pressure on car insurance premiums.”
All regions across the UK recorded price falls over the last three months. Drivers in Northern Ireland saw the largest percentage decrease in the cost of comprehensive car insurance, with a quarterly decrease of 8% with average premiums now costing £968. The smallest
annual decrease was seen in Central Scotland, where drivers saw a quarterly fall of 3%, with average premiums now costing £871.
REGIONAL TRENDS
The South West of England continues to be the cheapest region for car insurance, with average premiums now costing £606. Even though car insurance premiums in Inner London fell by £106 in the last three months, this still remains the most expensive region with average
prices at £1501. For the first time since the Index launched in 2006, the West Midlands region has become the most expensive area outside of the capital, with average premiums now costing £1157.
More locally focused data shows motorists in North West London experienced the greatest quarterly fall of 9% taking their average premiums from £1680 to £15291. Meanwhile Central London continues to be the most expensive postcode in the country where drivers now pay
an average bill of £1815, while Llandrindod Wells in Wales remains the cheapest town in the UK with prices on average now costing £5572
Drivers aged 28 benefited from the greatest price fall, compared to other age groups, seeing a 9% quarterly price decrease, taking their annual premiums to £1353. The only age group to see their car insurance prices increase during the first quarter of 2024 were drivers aged
17, with a rise of 1% (£42) and an average annual premium of £2919.
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