Whiplash reform sees insurance premiums drop
The average premium from January to March of this year was £768, down by 2% on the same period a year ago, research by comparison site Confused.com revealed.
However, women still have the edge for car insurance premiums, in spite of an EU directive stating insurers weren’t allowed to discriminate. A higher number of motoring convictions and bigger, faster cars means men on average pay £95 more than women.
For young drivers, the gap is even wider. A typical male driver aged 17 to 20 pays £2,348 on average, compared with £1,699 paid by women of the same age. The cheapest average insurance is paid by female drivers between 61 and 65, at £363.
Confused.com said the fall in premiums came as a result of reforms to whiplash claims, intended to crack down on false reporting. The “Ogden rate” – the formula used to calculate compensation for accidents – also changed.
Freddy Macnamara, CEO and founder of pay-as-you-go car insurer, Cuvva, said: “Drivers finally have some good news, with the government’s turnaround on the discount rate rules at last trickling down to annual premium pricing. The cost of running a car has become unmanageable for a lot of people in the last two years and this new data will offer a ray of light for those who need to drive, but are struggling to meet the costs.
“A persistent problem, however, is the sheer number of drivers who are still auto-renewing policies. More than one in three motorists did this last year, overpaying on their insurance by £600m as a result.”