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#Car premiums dropped in Q1 2018, AA Insurance Index shows

By 20th April 2018 January 21st, 2019 No Comments
​Reduction means insurance costs are now lower than a year ago.

The average Shoparound price for an annual comprehensive car insurance policy is marginally less than it was a year ago, according to the latest AA British Insurance Premium Index.

The firm detailed that the measure dropped by 2% between the fourth quarter of 2017 and the first quarter of 2018 to £660.64.

Premiums peaked at a record high during the second quarter of 2017 but have now fallen for three quarters in a row. However, compared to 12 months ago they have reduced by just 0.7%.

The AA’s Shoparound index reflects an average of the five cheapest prices from a range of insurers quoted by brokers, price comparison sites and direct against a fixed nationwide basket of ‘customers’.

Gender
The index revealed that men aged 17-22 pay on average £1,766.17 for a year’s comprehensive cover, while women in the same age group can expect to pay £1,505.28.

The broker explained that although gender equality has been in place for more than five years, young men tend to drive more powerful cars and cover greater annual mileages, than women; and thus command higher premiums.

The analysis also found that the cheapest age to insure a car is 60-69, with an average quoted premium of £403.

Confidence
Michael Lloyd, the AA’s director of insurance commented: “This is a glimmer of good news for drivers who are facing rising fuel prices and increased vehicle excise duty rates.

“Insurers’ confidence in offering lower quotes is boosted by the Government’s Civil Liability Bill commitment to review the so-called Ogden or ‘discount rate’ which affects the value of compensation pay-outs to severely injured victims of car crashes, as well as clamp down on the whiplash claim culture.

“This particularly affects premiums for young drivers who tend to be involved in more catastrophic crashes, and pay much higher premiums, than any other age group.”
Article is care of www.insuranceage.co.uk 

This article can be found here.

Tim Kelly

Tim Kelly

Tim is a highly qualified Independent Engineer with over 20 years experience as an Engineering Assessor of damaged vehicles.

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