Car insurance premiums are getting lower – and young drivers are the biggest winners. That’s according to analysis from Consumer Intelligence, which shows that average bills have dropped to £712 – a 5.5 percent fall in the past 12 months.
Under-25s, while still paying the highest premiums, saw bills fall by as much as 11.9 percent as they benefit from the continued growth of black box technology. Younger drivers pay an average £1,635 a year, compared with £412 for over-50s and £629 for motorists aged 25-49.
Average prices drop 5.5% in year to £712 https://t.co/3lsNq34rD4
— Consumer Intelligence (@consumerintel) June 28, 2018
If you’re after another example of a north-south divide, it’s drivers in London who pay the most (£1,024), while motorists north of the border pay the least (£522). But Consumer Intelligence states that average insurance premiums are still 21.9 percent higher than in October 2013, when the research experts began collecting the data.
John Blevins, Consumer Intelligence pricing expert said: “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 22 percent of all the most competitive quotes are now from telematics providers.”
It pays to shop around
Commenting on the Consumer Intelligence analysis, Matt Oliver of GoCompare urged caution, saying: “Drivers have been on red alert over car premium increases for months and the big danger now is that they assume their next renewal letter will automatically make pleasant reading. It won’t.
“Premiums remain at historically high levels, as Consumer Intelligence points out, with average car bills still 22 percent higher than they were less than five years ago. Insurers don’t just uniformly handout 5.5 percent cheaper premiums to all existing customers.
“In fact, it is existing customers who regularly get the highest prices – particularly if they’ve renewed a few years in a row.”
Regardless of your renewal quote, you should shop around for the best deal before giving your current insurance provider the opportunity to match a like-for-like quotation.