Car insurance premiums have dropped off 5.5% in the past 12 months. Data from Consumer Intelligence shows average bills have dropped to £712 since premiums hit a record high in September last year. Premiums have fallen for eight straight months with under-25s the biggest winners overall, with bills falling by 11.9%. The age group continue to benefit from an increase in the use of telematics, the research said. Around 61% of the most competitive policies for under-25s are now offered by telematics providers.
All parts of the country are seeing premiums drop, although the decrease in Scotland was marginal at 0.1%. However, Scots pay the lowest average premiums of £522 which is nearly half the annual bill of £1024 in London.
Despite the drop, average car insurance bills are still 21.9% higher than in October 2013 when Consumer Intelligence first started collecting the data. John Blevins, Consumer Intelligence pricing expert said: “Insurers are now free to compete on price without Insurance Premium Tax increases or changes to the Ogden rate which sets compensation for major personal injury claims. “That is very welcome and should provide some relief for drivers when other motoring costs such as petrol prices are on the rise. “The downward trend should continue with the increasing adoption of telematics helping to maintain the momentum. It’s interesting that around 23% of all the most competitive quotes are now from telematics providers.”