New statistics released by research firm, Consumer Intelligence, have revealed that car insurance premiums have fallen by more than 9% in the last 12 months.
The average annual cost of a fully comprehensive insurance policy in the UK is now £766.
Consumer Intelligence say that this fall in cost is largely driven by proposed changes to the calculation of whiplash-style personal injury claims, as well as the rise in ‘black-box’ telematics insurance policies.
22% of the cheapest car insurance quotes came from black-box providers, although this seems to vary depending on the driver’s age. For under-25s, telematics accounted for approximately 60% of the cheapest quotes, whereas for those over 50 it was only 7%.
This has led to under-25s insurance quotes dropping around 15.4% over the last 12 months. Despite this, they are still paying the highest, with an average of £1,608 for insurance premiums.
However, although prices overall have fallen considerably in the past year, they remain 20% higher than in February 2014, when Consumer Intelligence first started collecting data.
John Blevins, pricing expert at Consumer Intelligence, said increased use of telematics would drive prices down even further – especially for drivers over 50.
“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.”
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