The latest car premium rates analysed and noted by Consumer Intelligence;
Price rises for car insurance are continuing to slow, but motorists still face an annual rise of 9.8% in average quoted premiums, according to the latest Consumer Intelligence Car Insurance Price Index. However, most of the increase occurred between August last year and December, with average quoted premiums remaining unchanged over the past three months, according to the report.
The over-50s and drivers in Wales are benefiting the most from the slowdown, with average quoted premiums rising by only 2.6% for the over-50s and just 0.8% in Wales. In contrast, Londoners continue to face challenges, with average quoted premiums up 15.6% over the year to August.
Data shows that in August this year, the most common quotes for drivers ranged between £500 and £749, accounting for 22% of the five cheapest (Rank 1-5) quotes on price comparison sites. When considering the cheapest premium available to each consumer, around 68% of initial quotes were for less than £1,000. However, only 30% of drivers under 25 were able to secure quotes below £1,000, compared to 66% of those aged 25 to 49 and 89% of those over 50.
“While many insurers reported an easing of claims inflation as part of their half year results, claims costs remain a weight on profitability. More insurers are fighting for the perceived safer risks, with this competition driving down prices for the over 50s,” says Max Thompson, Insurance Insight Manager at Consumer Intelligence.
“This attitude to risk carries through to regional trends, too, with London seeing increases in quoted premiums of 4.4% in the last three months, compared to the next highest in the North-East with a 1.8% increase,” adds Thompson.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.