The average cost of comprehensive car insurance cover has fallen for the first time since late 2008, by 3.3% in the last quarter according to the Confused.com/ Towers Watson Car Insurance Price index. Despite this drop, the average cost of a comprehensive insurance policy stands at £816, which is 61% more than it was in 2006!
Prices for third party fire and theft insurance (TPFT) also fell by 0.4% in the last quarter, meaning that premiums decreased for the first time in four years. The average cost of a third party insurance policy is £1,158, but it is important to remember that those buying TPFT insurance tend to have a slightly younger age profile compared to those buying comprehensive cover.
Of course there are massive differences in car insurance prices according to age and experience with young male drivers (17 - 20) forking out an average of £2,499 for their annual policy, compared to drivers aged 66+ who pay on average just £438.
Location also accounts for price variations, with drivers in Oldham, East London, Uxbridge and Bradford seeing the biggest annual increases, some exceeding 5%. A 7.1% rise in Oldham made it the location with the fastest growing price increases in the UK. In contrast drivers north of the border enjoyed the biggest fall in prices with a decrease of 13% in Galashiels, followed by Inverness (11.6%) and Kirkwall (11.1%).
Gareth Kloet, Head of Motor at Confused.com said:
"After several years of significant price 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 by 32.6% over the last two years and 53.6% over the last three years, hard pressed customers would be well advised to shop around."
To help maintain lower insurance premiums, Tim Harris, CEO, ChipsAway recommends not claiming on your insurance for minor damage to your vehicle;
"It may be worthwhile getting any minor damage to your car repaired by an independent specialist such as ChipsAway. ChipsAway prides itself on high quality repairs to car body work which typically cost less than your insurance excess and mean that you are able to protect your no claims bonus.