Car drivers of all ages have been seeing cuts to their insurance premiums over the past year, according to a report from Consumer Intelligence. The report shows that premiums have been cut by up to 5.5%, with the average price dropping to around £712.
About the cuts to insurance premiums for drivers
Insurance premium hit record highs in September 2017, but have dropped for the past eight months, due to the competitive marketplace. The under-25s driving age group has seen the largest gains, with costs dropping by around 11.9% due to continued growth in telematics, or black box technology. Over 60% of the low-cost insurance policies offered to under-25s are offered by telematics providers. However, young drivers pay an average of £1,635 a year for insurance premiums, which is still expensive when compared to premiums of around £413 for over-50s drivers or £629 for drivers aged 25 to 49.
There is a wide regional variation in insurance costs. The UK as a whole saw premiums drop in the period, but the cut in Scotland was only 0.1%. The Scots do, however, still pay the lowest premiums at an average of £522, and this is particularly striking when compared to London prices of around £1,024.
The north-west of England is experiencing the largest price cuts of 9.5% annually, although drivers in the north-west pay the second highest total premiums – around £847.
John Blevins, a pricing expert with Consumer Intelligence, commented: “Insurers are now free to compete on price without Insurance Premium Tax increases or changes to the Ogden rate which sets compensation for major personal injury claims.”
“That is very welcome and should provide some relief for drivers when other motoring costs such as petrol prices are on the rise. The downward trend should continue with the increasing adoption of telematics helping to maintain the momentum. It’s interesting that around 23% of all the most competitive quotes are now from telematics providers.”
One of the most important tasks to carry out when your car insurance is due is to shop around a number of providers, as staying with the same insurer tends to be more expensive in the long run.
At Insuro, we provide a range of motor insurance policies for drivers of any age. Get in touch for more details.