Motor insurance premiums drop two per cent in quarter three
Motor insurance premiums fell two per cent in the third quarter of the year, according to figures released by the Association of British Insurers.
This follows a two per cent fall in average motor insurance premiums in the second quarter of the year.
Average annual prices are now £612, but this is still £50 (nine per cent) higher than they were this time in 2023.
ABI figures revealed that in total insurers paid out £2.9bn in motor insurance claims between July and September, which is 14% up on the £2.5bn paid in the same period last year, while the average claim paid remained stable from quarter two at £4,800 – although this is eight per cent higher than the third quarter of 2023.
Meanwhile, repair costs totalled £2bn for the quarter, which is 26% higher than the same period last year.
Motor insurance premiums taskforce
The news comes after the government announced a new taskforce to tackle the high cost of motor insurance. The ABI is part of the taskforce, which will also seek solutions to bringing prices down.
Mervyn Skeet, ABI director of general insurance policy, said: “While our latest figures show the second consecutive quarterly drop in average motor insurance premiums, we know that the industry continues to face significant cost pressures, and the price of cover remains a strain on household finances.
“We remain determined to do all we can to support motorists. As part of this, we’re committed to playing our part in supporting the government’s taskforce, and we look forward to bringing our ideas and expertise to the table, contributing to this initiative on behalf of our members.”
