Car insurance premium costs drop by 12% in first quarter of this year

Tuesday, April 10, 2018

Car insurance premiums have dropped by an average of £70 per person in the first three months of 2018. The average premium is now £504, following 3 years of increases to premiums.

 

After compiling and analysing data from 1.7 million quote requests between January and March 2018, price comparison site Moneysupermarket.com found that the average fully comprehensive car insurance quote has fallen, having been hiked to £574 by the end of 2017.

 

This drop is believed to be due to recent changes to government policy, regarding fraudulent claims and personal injury pay-outs. Consumer affairs expert at Moneysupermarket.com, Kevin Pratt, explained “For once, it’s good news for hard-pressed motorists after months of price increases.

 

“Last year, premiums rocketed because of changes to the way personal injury compensation payments are calculated – insurers increased prices to help fund larger pay-outs to victims of accidents. Thanks to a government U-turn, the impact of the change on compensation awards will be reduced at some point this year, allowing insurers to ease premium hikes.

 

“Additionally, the government is overhauling the legal system later this year to reduce the number and size of fraudulent whiplash claims, which currently add £35 to £40 to every car insurance premium.”


Prices were seen to fall in nearly every category, except for young drivers. The average premium for the 17-19 year old age bracket continued to rise by 1.3%, from £1,341 to £1,357.99. Premiums for men fell by an average of 9%, from £606.66 to £550.10, and women saw a decrease of 14.8% from £528.75 to £459.43. 

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