Willis Towers Watson and Confused warn of future increases as they publish data for Q4 2019. Car insurance premiums rose by £32 (4%) during Q4 2019, the Willis Towers Watson and Confused.com Car Insurance Price Index has revealed. The average premium recorded in Q4 2019 was £815, up from £783 the previous quarter. The figure is an annual change of £41 (5%) on the £774 average recorded in Q4 2018.
The index is based on price data from around six million quotes each quarter. Regions Drivers in Inner London were hit with the large annual increase in Q4 2019, with average premiums rising £91 (8%) from £1,169 to £1,260. Conversely, the Scottish Borders experienced the smallest increase at 1%, bringing the average annual premium to £615. The cheapest region to drive in the UK was the South West, with car insurance averaging £595. The West Midlands and Merseyside are the only regions outside the capital where car insurance exceeds £1,000 on average, with costs reaching £1,011 and £1,053 respectively. Demographics Female drivers aged between 26 and 30 experienced the greatest rise in car premiums in Q4 2019 – annual costs rose £68 (9%) from £755 to £823.
However, the demographic experiencing the greatest annual costs overall remains male drivers aged between 17 and 20. This group pays £2,369 on average, increasing £139 (6%) on the £2,230 figure reported a year ago. Analysis Graham Wright, UK lead of P&C personal lines pricing at Willis Towers Watson, commented: “This is the fifth quarter in a row where prices have swung between increases and decreases, showing the market’s ongoing uncertainty around pricing. “This uncertainty has been fuelled by many elements, including timing challenges with the Civil Liability Bill implementation.” The Civil Liability Act is due to come into force in April 2020. He continued: “Many of the challenges observed throughout 2019 will persist in 2020, as cost pressures remain from expensive vehicle repairs, theft claims, last summer’s discount rate change, Brexit-related uncertainty and IPT increases.” Trends Steve Fletcher, head of data services at Confused.com, added: “We are seeing the biggest annual increase in car insurance premiums in two years, and steepest quarterly rise since June 2017. “The past 18 months have been very volatile, with prices fluctuating before delivering a powerful blow to end the year. “If we see a repeat of this cycle, then we can anticipate prices to exceed £900 in the next 18 months and reach the highest on record. “With the current economic uncertainty surrounding the UK, we shouldn’t hope to see an easing of insurance premiums in 2020.”
This article is care of www.insuranceage.co.uk
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