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 Confused.com/Towers 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 comprehensive cover.
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.
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 Confused.com 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.”