Car insurance premiums down 16% in a year
Comprehensive car insurance premiums have fallen by £136 to an average annual price of £735 in the last 12 months.
According to the latest Confused.com Car Insurance Price Index, produced in association with WTW, motor premiums are now 16% lower than they were a year ago.
Meanwhile, the new data has revealed that motor premiums have fallen for seven consecutive quarters and are now 26% lower than they were at their peak in December 2023.
Drivers under 17 have enjoyed the greatest declines, with prices down 28% from £2,788 to £2,008, while those under 18 have seen a fall of 20% to £2,342. Meanwhile, drivers aged over 40 enjoyed a 15% fall in the last year and over 52s saw premiums come down by 13% over the same period.
Market consolidation
Tim Rourke, UK head of P&C pricing, product, claims and underwriting at WTW, said: “The impact of market consolidation is potentially driving some broadening of footprints into traditionally less competitive areas of the market. Combined with lower claims frequencies in many segments, this may be maintaining the continued downward trend.
“Average premiums have now dropped for the seventh consecutive quarter despite a backdrop of high vehicle repair costs and third party injury claims inflation running higher than CPI levels.”
Higher premiums
Steve Dukes, CEO at Confused.com added: “Car insurance prices have been dropping consistently for some time, but prices are still 25% higher compared to three years ago. And this is having a financial impact on many customers when combined with other financial pressures they’re facing.
“It’s important that, as an industry, we don’t lose focus on the underlying factors which are pushing premiums higher than they have been historically. There’s still a significant opportunity to work together to deliver further value to customers.”
