26 Jan 2018 Car insurance bills have increased by 9.6% in the past year, but the relentless rise has gone into reverse following a Government U-turn, new analysis from insurance research experts Consumer Intelligence shows.
Its data reveals the average most competitive premiums rose by three times inflation – 3% to – £837 but overall prices dropped in the last quarter of 2017.
The Government review of the discount or Ogden rate, which sets pay-outs for major personal injury claims, has enabled insurers to reverse rises; confirmation of the new rate of between 0% and 1% could spell further cuts.
Average premiums dropped by 1.7% in the three months ending December, with under-25s benefiting the most – their average premiums are up just 2% in the past year to £1,953.
Younger motorists are also limiting their insurance bills thanks to black box technology – so-called telematics – which rewards improved driving. Around 59% of the most competitive quotes are from telematics providers.
Over-50s drivers are experiencing the biggest increases in premiums at 11.8% but still pay average prices of just £395 a year. Motorists in London pay the highest premiums at £1,217 which is more than double the cheapest at £606 for the South West of England.
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