You are here: Home - Insurance - News -

Car insurance price falls stall

Written by: Emma Lunn
Car insurance premiums have remained broadly stable over the past year, according to Consumer Intelligence.

The insurance data analytics expert warns that premiums are set to start accelerating again as rising claims costs and Brexit uncertainty put the brakes on premium cuts.

Prices fell 0.2 per cent in the year to June to an average premium of £809, but the past three months have seen increases of 1.4 per cent across the market.

Drivers aged over 50 have seen an overall increase of 1.8 per cent in the past 12 months with an average premium of £408, whilst the 25 to 50 age group has seen a slightly smaller increase of 0.6 per cent with an average premium of £720.

Drivers aged under 25 have benefitted from the largest premium reductions. This demographic has seen a price drop of 5.9 per cent in the past 12 months, although young people still attract the largest premiums (an average of £1,734).

Almost two-thirds (63 per cent) of the top five cheapest quotes for under-25s are now provided by telematics providers. This figure is up 2 per cent over the past 12 months.

John Blevins, Consumer Intelligence pricing expert, said: “The market has experienced some tough times and regulation changes – such as the Insurance Premium Tax and Ogden discount rate changes, to name a couple over recent years – have forced premium increases.

“Looking ahead, despite the recent hiatus, there’s nothing to suggest the general direction of upward travel will change.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Which? calls for ban on unfair airline terms

Which? is urging the aviation regulator to ban rip-off ‘no-show’ clauses on flights.