Comprehensive car insurance premiums fell by 7% in the first three months of 2018, the largest quarterly drop in four years and the third in a row according to research by Confused in association with Willis Towers Watson.
The findings revealed that UK motorists are now paying £768 on average which is 2% less than this time last year and the first annual drop in prices since 2015.
According to the Car Insurance Price Index the cost of comprehensive car insurance fell across the UK with all regions experiencing a quarterly decrease.
Stephen Jones, UK head of P&C pricing, claims, product and underwriting at Willis Towers Watson, commented: “A third quarterly drop and annual deceleration in premiums indicates the industry clearly expects the new Civil Liability Bill to lead to a positive discount rate and, as one would expect in such a highly competitive market, these cost benefits are being passed through to consumers.”
Looking at future price movements he warned that there were “a number of hurdles that will need to be cleared” before a new discount rate comes into effect and that Insurance Premium Tax could be increased again. In addition he cited uncertainty around the Brexit negotiations and ongoing pressures on repair costs.
However he concluded: “The outlook for consumers is far more positive following these latest favourable developments in the Ogden rate saga.”