Car insurance prices in the UK fell for the third straight quarter. Drivers now pay an average of £ 50 less than early 2020.
This is from Confused.com’s latest auto insurance price index, which shows that the average cost of comprehensive auto insurance is now £ 765 after dropping £ 5 in the last quarter.
Figures based on pricing data comprising nearly six million customer offers per quarter also show that prices have fallen 2% over the past year.
And they could fall even further after the Financial Conduct Authority (FCA) announced last month that they would prohibit insurance companies from increasing premiums for policyholders who are in what is known as “price increases.”
Louise O’Shea, CEO of Confused.com, said, “These have been turbulent months for the auto insurance world and will likely continue for some time as insurance companies try to adapt to the constant and dramatic changes in driver behavior. Not to mention how they handle it. much-needed changes to the FCA that were announced last month.
“FCA has proposals to make the switch easier by simplifying the automatic renewal cancellation process so we can see how people are using this as they become more price conscious.”
The index, co-produced by Willis Towers Watson (WTW), shows that drivers crossing the Scottish border benefited from the biggest quarterly price drops and their premiums fell 5% on average to £ 554.
Inland London was the only region in the UK to break the downward trend in prices in the last quarter as the cost of comprehensive auto insurance rose 3%.
Drivers aged 17 and over benefit from the largest price reductions compared to other age groups. They saw a 7% cut in quarterly prices and reduced their annual premium to £ 1911.
Meanwhile, 33 year old policyholders experienced the largest price increase of 2%, increasing their annual premium to £ 705.
“One of the biggest challenges for insurers and intermediaries is managing the transition to new global prices in the face of current market pressure on competition and therefore deciding how and when to make price changes,” Graham said. Wright, UK Head of P&C Personal Line Pricing at WTW.
“This definitely remains one of the most challenging moments in insurance pricing.”