United Kingdom vehicle insurance premiums see biggest quarterly fall in four years

Marco Green
April 16, 2018

The cost of auto insurance policies fell £13 on average during the first three months of 2018, according to Confused.com's latest price index.

According to the Confused.com Car Insurance Price Index, produced in association with Willis Towers Watson, UK motorists now pay £768 on average as premiums continue to decline. It said prices peaked in the last quarter of 2017 but have since fallen 7%.

The average vehicle insurance policy is now £768 - up from a low of £499 in 2008. The cheapest average insurance is paid by female drivers between 61 and 65, at £363. Although insurers can't set premiums based on gender, women generally pay less because they have fewer high-value claims and motoring convictions.

Unless motorists take the time to shop around, it appears any savings aren't being passed on at renewal time with many insurers blatantly increasing premiums for no obvious reason.

According to the figures, the average premium price has dropped by 2% to £768 over the past year, with reforms regarding whiplash claims and changes to how compensation is paid being cited for the fall.

Confused.com said the biggest fall in premiums since their peak were for 17-year-olds, but older drivers' premiums had still risen.

The Ogden rate is a formula used to calculate compensation for accidents, and a new rate proposed by the government a year ago sparked outrage among insurers and threats of huge premium increases.

That is according to research by Confused.com, which said the lower prices reflect an optimistic outlook for insurers following changes to the discount rate and a crackdown on whiplash claims.

It was found that vehicle insurance premiums are 2% cheaper now than they were this time a year ago, with motorists paying an average of £13 less for cover. However, in September the Ministry of Justice said it would revise the scheme.

In Scotland, premiums are also still increasing, with motorists in the Scottish Borders area suffering the largest increase (6%) since previous year. Overall, men pay approximately £95 more than women.

Other reports by Click Lancashire

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