27 Sep 2018 Car insurance price cuts are speeding up with drivers seeing premiums drop by 9.1% in the past 12 months, new analysis from insurance research experts Consumer Intelligence (CI) shows.
Its data shows average car insurance bills have fallen to £766 with black box technology – so-called telematics – which rewards safer driving adding to the increased competition across the market.
Under-25s are the biggest beneficiaries and can expect annual premium quotes of £1,608 after prices fell 15.4% in the past year. The over-50s only saw prices drop 6.8% in the past year but they have the comfort of annual bills of £392.
Across the market 22% of all the top five cheapest quotes came from telematics providers. For under-25s around 60% of the most competitive policies are telematics while just 7% of the most competitive for over-50s are telematics.
All parts of the country are benefiting with the biggest annual price cuts in the North West at 14.9%. Drivers in London still see the highest annual bills at £1,150 – more than double the lowest at £510 in Scotland.
But premiums are still 20.4% higher than February 2014 when Consumer Intelligence – whose figures are used to calculate official inflation statistics – first started collecting the data.
John Blevins, Consumer Intelligence pricing expert said: “The trend in quoted premiums is down which may be partly due to insurers passing on the anticipated benefits of whiplash reforms now.
“It’s another sign of the increased competition for business and it is likely premiums will continue to fall unless there are any major shocks in claims or tax rises.
“The influence of telematics is a major factor with increased use of it by the over-50s and a 3% rise since March according to our data.
“Generally over-50s experience the biggest price rises as a percentage and the smallest price cuts so older drivers should explore telematics if they want to beat the demographic trend.”