As prices in virtually every other sector are on the rise, according to an insurance comparison website, comprehensive auto insurance has dropped by an average of 24 per cent during the last 30 months.
Current costs of auto insurance premiums, as published in the car insurance pricing index of confused.com in association with Tower Watson, have not reached levels this low since 2010. In fact, the average cost of comprehensive coverage has fallen by £105, and the cost of the average fire and theft premium has dropped by 6.5 per cent across the UK.
The report found that in the last three months alone, auto insurance premiums have dropped by £26, or 3.9 per cent, and are likely to continue falling even further.
Eight out of the last nine quarters has witnessed a drop in comprehensive premium prices. Although many have contributed the price reductions to the lowered cost of legal fees for personal injury claims as a result of the implementation of the Sentencing and Punishment of Offenders Act and Legal Aid, Stephen Jones, Tower Watson’s UK insurance pricing leader, believes the reason for lower premium costs is more complex.
According to Jones, the increasing number of telematics being used has helped drive down the auto insurance premiums of younger drivers, whilst data enrichment is allowing for more targeted and confident price reductions.
Compared to males, female drivers have traditionally enjoyed much lower premiums, because they have historically been involved in fewer accidents than their male counterparts. However, the premium gap between male and female motorists has narrowed and now stands at only £30.
Whilst insurance premiums for young males have fallen significantly since the inception of gender equality, the premiums for young women have risen noticeably. The average comprehensive coverage insurance policy for women between the ages of 17 and 20 rose by nearly 10 per cent during the last 12 months, reaching £1,862.
Conversely, the average cost of a comprehensive premium for male motorists in the same age bracket has dropped by a staggering 29.2 per cent.
Young drivers experienced the largest drop in the average cost of comprehensive premiums, decreasing eight per cent for 17 and 18-year old drivers.
When examined at the postcode level, drivers living in Huddersfield, Llandrinod Wells, and West Central London enjoyed the most significant price drops during the past year. Unfortunately for drivers in Inverness, they received a 2.6 per cent increase during the third quarter.