Car insurance premiums decline

Car insurance premiums have dropped by an average £70 per person for the first quarter of the year.

The 12% decrease will be welcomed by motorists after premiums have continued to rise over the last three years. The average premium now comes in at £504, having previously been increased from £421 in 2015 to £574 by the end of 2017.

The data – compiled by – analysed around 1.7 million quote requests from January to March this year. The fall is due to recent changes in governmental policy surrounding fraudulent claims and personal injury pay-outs.

Kevin Pratt, consumer affairs expert at, said, ‘For once, it’s good news for hard-pressed motorists after months of price increases.

‘Last year, premiums rocketed because of changes to the way personal injury compensation payments are calculated – insurers increased prices to help fund larger pay-outs to victims of accidents.

‘Thanks to a government U-turn, the impact of the change on compensation awards will be reduced at some point this year, allowing insurers to ease premium hikes.’