Car insurance prices are down, but Brexit looms

Car insurance October 2019

New data has revealed that car insurance premiums fell during the third quarter of 2019. This, following a slight hike in the second quarter, and the sharp drop of the first quarter.

Overall, the average insurance premium is the cheapest it’s been all year in Q3 (July to September): £459 plays £472 for Q2, and £466 for Q1. Overall the Q3 cost, according to MoneySuperMarket, is five percent cheaper than the same period last year.

Is the cost of insurance coming down?

The figures seem to suggest so. It’s the first time since 2015 that the average insurance cost has been below £480 for three successive quarters. That said, there’s always room for increases. 

Young driver insurance premiums

Indeed, there are indications that prices are about to rise. Third party, fire and theft policies have risen on average by a respective seven and six percent. Brexit uncertainty could be blamed for this, given the currency fluctuations it’s caused and questions around imported replacement parts. The increasing expense to repair modern cars is also increasing claim costs and forcing premiums up.

Are gender and age still factors?

Legally, insurers aren’t allowed to discriminate on cost based on gender. Despite this, the average quote for men and women was vastly different in Q3 2019. Men paid £503 on average, which is down by five percent year-on-year. Women meanwhile, paid £412 on average, which is down four percent year-on-year.

Motorists overpaying on insurance by £1.2billion

Gender specifically hasn’t caused this, however. Riskier cars to insure are generally the preserve of male drivers. Women are also making fewer claims, and therefore have longer no-claims periods on average.

Age remains a kicker, especially for young drivers, though prices for the youngest motorists seem to be coming down. Drivers aged between 17 and 19 have seen premiums drop by four percent over the past year, to £991 for fully comprehensive. For everyone under 30, premiums dropped, while they increased for everyone over 30, in Q3 2019.

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