Consumer Intelligence warned that #telematics restrictions following coronavirus may hit youngest drivers hardest. UK motor premiums have continued to rise, according to data published by Consumer Intelligence today (3 April). Prices rose 2.8% over the last three months, contributing to a 5.5% increase in the last year. The research firm said claims costs are “driving the continued upward trend”
It added that last year’s adjustment of the Ogden rate from -0.75% to -0.25% was also continuing to have an impact. Age The average car insurance premium now stands at £829. While under 25s continue to pay the highest premiums, at an average of £1,795, the group has experienced the smallest increase over the last year (0.7%). The over 50s and those between 25 and 49 experienced larger hikes at 7.4% and 6.2% respectively, although their average premiums were £402 and £693. John Blevins, pricing expert at Consumer Intelligence, commented: “It’s a two-speed marketplace. Large-scale price increases are not being felt across the board.” Regions The West Midlands attracted the highest average premium rise of 8.0%, followed by Scotland (7.6%) and London (7.4%). London remains the most expensive place for car insurance, with a typical policy costing £1,269. Bucking the trend, however, is the South East. Drivers in the region will have experienced a 2.3% decline in premiums over the last three months, paying an average of £662 for their policy. Blevins explained: “Claims experience and localised crime rates tend to influence regional pricing.” Telematics Consumer Intelligence recorded a slight increase of in the uptake of telematics over the past month. The firm said 61% of the cheapest quotes for motorists aged under 25 include telematics products. This drops to 14% for those aged between 25 and 49 and to just 3% for the over 50s. Blevins added: “Up until now, telematics has continued to keep generic premiums hikes at bay for the under 25s. However, under new lockdown conditions enforced to flatten the curve of the coronavirus outbreak, a number of insurers are hitting pause on offering telematics policies to new customers due to installation challenges. “As a result, we could see the average premium for the under-25s rise over the coming weeks and months.”
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