General Insurance Article - Downhill drive for the cost of car insurance


Downhill drive – large quarterly drop sees the cost of motor insurance fall to a two-year low

 The average cost of motor insurance has fallen to its lowest level for two years - £466 - according to the ABI’s latest Motor Insurance Premium Tracker out today. The Tracker is the only survey that looks at the price consumers pay for their cover, rather than prices quoted.

 
 Today’s figures reveal that:
 The average price paid for motor insurance in the first quarter of the year was £466, the lowest quarterly figure since Q1, 2017.
  
 The average premium fell by £15 on the previous quarter and was the largest quarter on quarter fall since 2013. This was the fourth consecutive quarter year- on-year premium decrease.
  
 Reasons for this significant fall are likely to be some insurers passing on expected cost savings in anticipation of the reforms of the Civil Liability Act, which will deliver a fairer compensation system for claimants, and continued competitive premiums for motorists. Also, new vehicle registrations in March saw a rise in new cars purchased, typically by more mature, lower risk drivers.

 Mark Shepherd, ABI’s Assistant Director, Head of General Insurance Policy, said: “The falling cost of motor insurance is great news for motorists after several years of rising premiums, which largely reflected the UK’s costly personal injury compensation system. As the industry promised, motorists are now beginning to see the benefits of the personal injury reforms recently enacted.

 “However, some cost pressures remain, with rising repair costs, and the Government needing to resist any temptation to further increase Insurance Premium Tax. So motorists should continue to make the most from a competitive market by shopping around for the best deal for their needs.”

Back to Index


Similar News to this Story

XPS Pensions Group appoints new Head of Investment
XPS Pensions Group (XPS) announces the appointment of Alasdair Gill in a new role, as Head of Scotland Investments Team, to help grow their propositio
European Reinsurers can claim capital credit from Guernsey
Guernsey reinsurance works for EU-domiciled insurers and allows them to take credit in capital calculations for reinsurance under Solvency II regulati
Mike Brockman says night time curfews may kill young drivers
Responding to the Government’s plans to explore the introduction of graduated licensing for young drivers , Mike Brockman, the pioneer of telematics i

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.