Car insurance continues downward trend
Car insurance fell for the third quarter in a row from July to September, down two per cent in the quarter to an average annual premium of £861.
This is based on the Confused.com Car Insurance Price Index, produced in conjunction with WTW, which found average premiums fell by £21 in the third quarter of the year and have now dropped seven per cent year-to-date.
The modest decline follows a five per cent fall in the first quarter of 2024 followed by a three per cent drop in the second quarter.
Tim Rourke, UK Head of P&C Pricing, Product, Claims and Underwriting at WTW, said: “Insurers have felt able to continue the reducing trend in premiums supported, in particular, by benign claims frequency experience for most of 2024. This reflects a basket of influences, including action on reducing speed limits, the increasing maturity of workers’ hybrid working arrangements, and consumers increasingly choosing slightly higher policy excesses to reduce their insurance costs.
“The rate of premium reduction seen earlier in 2024 has abated somewhat reflecting continuing high inflation rates on some types of claim, including total loss settlements, mixed personal injury claims and injury general damages, and claims arising from recent episodes of extreme weather.”
Car insurance
Meanwhile, the data also revealed that drivers aged 70 enjoyed from the greatest price fall compared to other age groups, seeing a seven per cent quarterly price drop to £454.
Steve Dukes, CEO at Confused.com, said:
“The number of customers shopping around and switching their car insurance each year remains at historically high levels. With this also comes a lot of competition between insurers. And what we’re seeing is insurers investing in data and technology in order to focus on acquiring their target customers. This level of specialist data analysis is crucial for insurers to remain competitive and relevant in a very dynamic market.”
