Comprehensive car insurance premiums ‘fall 12%’
The average premium was £644 in the final quarter of 2013, a 12.5% decrease compared to the same period the previous year.
This compares to £858 in the second quarter of 2011 when prices were at an all-time high.
For third party fire and theft cover only, average premiums stood at £1053, a decrease of 7.5% year-on-year, and a 0.4% reduction quarter on quarter.
Young males, who have traditionally paid higher premiums for their car insurance, have been the main beneficiaries of comprehensive price reductions over 2013, with 17-20 year olds seeing their premiums fall by 23%.
Since the EU Gender Directive, which took effect on 21 December 2012, insurers are no longer able to use gender as a factor when pricing any type of insurance. Young females were expected to see a dramatic increase in their premiums.
However, they have also benefitted from a generally soft market in 2013, the report found.
In fact, females aged between 21-25 saw the biggest year-on-year fall of 14%, bringing their average insurance premium down to £936.
Gemma Stanbury, head of car insurance at Confused.com, said: “With the EU Gender Directive coming into effect at the end of 2012, it’s clear to see that the insurance industry has reacted to the change in legislation over the last year.
“Prices between men and women have evened out over the year seeing a price difference of only £61, compared to a significant price difference of £112 (males £807 compared to females £695) seen in Q3 2012.
“These falling prices are welcome news for motorists; however the latest car insurance price index highlights that price rises could be on the horizon with some males already experiencing price hikes in the last quarter.”