Premium prices show signs of easing
New figures have revealed that car insurance premiums fell by five per cent in the last three months.
According to Confused.com’s price index, produced in collaboration with WTW, comprehensive car insurance prices decreased by an average of £54 to £941.
The price index analyses data from over six million customer quotes in the UK each quarter.
It found that despite a small fall in the last quarter, premiums were up 43% – or £284 – across the year.
The greatest quarterly decrease was recorded in Northern Ireland, where premium prices dropped by eight per cent. Scotland saw the smallest fall in prices at just three per cent.
Regionally, prices in the South West remain the cheapest at an average price of £606, with London (£1,501) and the West Midlands (£1,157) the most expensive.
Tim Rourke, UK head of P&C pricing, product, claims and underwriting at WTW, said: “After a series of record highs in 2023 took car insurance premiums into uncharted territory, the latest pricing data suggests the relentless rise in prices may finally be turning a corner. Even with inflation easing, however, more vehicles with advanced technology that require complex and expensive repairs and higher rental vehicle costs, increased frequency and severity of claims and ongoing supply chain issues risk a perfect storm of issues that can be expected to continue to put pressure on car insurance premiums.”
Steve Dukes, CEO at Confused.com, added: “While the cost of car insurance may have dropped at the beginning of this year, customers are still paying historically high prices for their car insurance. Premiums are still more expensive year-on-year, so as an industry, there’s still an important role to play in helping customers to understand where they could be saving money.”
