At £466, the average cost of a motor insurance premium has fallen to its lowest level for two years, according to the ABI’s latest Motor Insurance Premium Tracker.
It is the only survey that looks at the price consumers actually pay for their cover, rather than prices quoted, and reveals that:
· The average price paid for motor insurance in the first quarter of the year was £466, the lowest quarterly figure since Q1, 2017.
· The average premium fell by £15 on the previous quarter and was the largest quarter on quarter fall since 2013. This was the fourth consecutive quarter year-on-year premium decrease.
Reasons for this significant fall are insurers passing on expected cost savings in anticipation of the reforms of the Civil Liability Act, which will deliver a fairer compensation system for claimants, and continued competitive premiums for motorists. Also, new vehicle registrations in March saw a rise in new cars purchased, typically by more mature, lower risk drivers.
“The falling cost of motor insurance is great news for motorists after several years of rising premiums, which largely reflected the UK’s costly personal injury compensation system,” Mark Shepherd, the ABI’s Assistant Director, Head of General Insurance Policy, said. “As the industry promised, motorists are now beginning to see the benefits of the personal injury reforms recently enacted.
“However, some cost pressures remain, with rising repair costs, and the Government needing to resist any temptation to further increase Insurance Premium Tax. So motorists should continue to make the most from a competitive market by shopping around for the best deal for their needs.”