Auto insurance prices at their lowest in seven years

UK car insurance prices fell to their lowest level in seven years after the biggest quarter-over-quarter drop on record, new data from MoneySuperMarket has revealed.

The The figures show that the average cost of annual comprehensive car insurance now stands at £ 417, which is the cheapest price recorded since the start of 2014, when premiums were £ 405.47.

Prices fell an average of 15%, or £ 73.32, in the first three months of this year, the biggest quarterly drop recorded by researchers since they started tracking premiums there Eight years.

Andy Teasdale, auto insurance spokesperson for MoneySuperMarket, said additional competition for sales during the COVID-19 pandemic has caused insurers to cut premiums as fewer claims have passed on more of the benefits to customers.

“It’s great to see these savings passed on to customers, however, it’s likely that the bubble will burst at some point as the lockdown loosens and driving – along with accidents and claims – starts to rise again. “, he added.

The latest figures show that every region in the UK has benefited from the fall in premiums, with the West Midlands enjoying the biggest reduction of 17% in the first quarter of this year.

Jersey, Guernsey and the Isle of Man, Northern Ireland and the South West experienced the smallest change in their average premium costs for all-risk motor insurance.

The cheapest prices are now in the Crown Dependencies at £ 276.25, followed by the South West and Scotland at £ 291.08 and £ 324.31 respectively. The most expensive prices are in London, where the average premium is £ 607.73.

When it comes to age brackets, premium costs have seen the biggest drop for drivers aged 17-19, dropping 37% to £ 504.85 on average.

Driving tests have been canceled until current lockdowns are relaxed, and fewer new young drivers have resulted in a sharp drop in average premiums for this age group.

Teasdale said it is still not clear how the working models will change once the lockdown measures are lifted, adding: “If there is a significant change, it could mean that we can take advantage of lower premiums more. long time.”

Image credit: iStock

Author: Chris Seekings


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