Car Insurance Premiums Fall For the First Time Since 2008

The average cost of fully-comp car insurance cover has fallen for the first time since 2008. The cost was down by 3.3% in the last quarter according to the Watson Car Insurance Price index. Despite this, the average cost of a comprehensive insurance policy is £816, which is 61% more than it was in 2006!

Prices for third party fire and theft insurance (TPFT) also fell by 0.4% last quarter. This means that premiums decreased for the first time in four years. The average cost of TPFT insurance is £1,158. Those buying this type of cover tend to be younger than those buying a comprehensive cover.

Price Variations

Of course, car insurance premiums vary dependant on age and experience. Young male drivers (17 – 20) pay an average of £2,499 per year, compared to drivers aged 66+ who pay on average £438.

The location also accounts for price variations. Drivers in areas like Oldham and Bradford have seen the biggest annual increases. A 7.1% rise in Oldham made it the location with the fastest growing price increases in the UK. But, drivers north of the border enjoyed the biggest price fall. Inclusive of a decrease of 13% in Galashiels, followed by Inverness (11.6%) and Kirkwall (11.1%).

Gareth Kloet, Head of Motor at said:

“After several years of significant increases, the latest index shows a small decline. Whether this is a sustained trend or a blip remains to be seen. With insurance prices up bu 53.6% over the last three years, hard-pressed customers would be advised to shop around.”

To help maintain lower premiums, Tim Harris, our CEO, recommends not claiming on your insurance for minor damage;

“It may be worthwhile getting minor damage to your car repaired by a specialist, such as ChipsAway. We pride ourself on high-quality repairs, which typically cost less than your insurance excess. Meaning you are able to protect your no claims bonus.”

Ready to book your repair?
Ready to book your repair?
You're just a few short steps away from fixing that damage!
Get a Free Estimate
Keep me updated on news & offers

Our affiliates & accreditation
  • 3M
  • IMI Approved Centre
  • ISO 9001 Registered
  • ISO 14001 Registered
  • PPG
  • Supagard
Go back to the top