UK car insurance prices fall to five-year low
UK auto insurance prices are the lowest in five years after a significant drop in claims from successive closings, new analysis has revealed.
Results from Willis Towers Watson (WTW) show all-risk car insurance prices fell 3% in the second quarter of this year to an average of £ 522, the lowest since early 2016.
Premiums have also declined 12% over the past year, the second largest annual drop since 2014, with prices now falling for three consecutive quarters.
Graham Wright, senior director of WTW, said COVID-19 and regulatory pressures have meant the personal lines industry is now poised for “one of the most turbulent times in its history.”
Even without the pandemic, regulatory reforms sweeping through the industry, including the Financial Conduct Authority’s ban on general insurance prices and the Justice Department’s whiplash reforms, are creating pressure. simultaneous so that prices rise and fall respectively, “he added.
From April to June 2021, the cost of full car insurance trended down in all parts of the UK except Northern Ireland, which saw its premiums increase by 1 %.
Drivers in central London and the Manchester / Merseyside areas benefited from the largest quarterly price drop, with their insurance premiums falling on average 5% to £ 808 and £ 675, respectively.
Central West London remains the UK’s most expensive place to buy car insurance, with drivers now paying an average of £ 981, while the cheapest town is now Llandrindod Wells in Wales, where drivers are drivers pay an average of £ 319.
Female drivers aged 71 and over enjoyed the largest price drop, compared to other age groups, with a quarterly price drop of 4%, while female drivers aged 17-20 and male drivers males aged 66 to 70 experienced the smallest decline. at prices of 2%.
Although insurers have been able to offer cheaper premiums thanks to lower claims during the pandemic, Wright said premiums may soon rise again.
“With more cars expected to hit the road when lockout rules are further relaxed from July 19, the increase in kilometers driven risks pushing premiums in the opposite direction to pre-pandemic prices.”
Image credit: iStock
Author: Chris Seekings