The average cost of comprehensive car insurance has fallen by nearly £50 so far in 2012 according to the latest edition of the Confused.com/Towers Watson Car Insurance Price Index.
The cost of comprehensive cover fell by 2.3% between April and June to an average of £797, a drop of 7.1% compared to 12 months ago. Third party, fire and theft (TPFT) premiums also fell in the second quarter, although at a slower rate of 0.8%, to an average of £1,149.
The latest findings, which are based on nearly 5 million customer quotes, reveal:
• The average cost of a comprehensive motor policy has dropped by £47 since the end of 2011. Over the last five years, prices peaked at an average of £858 at the end of June 2011.
• Having received the largest price decreases in each of the previous two quarters, 17-20 year old women saw an average 0.5% increase in the quarter to £1,878 – the only group to see prices rise.
• Comprehensive prices are falling in all regions. The West Midlands has had the lowest rate of decrease in the past 12 months (-3.6%) and the West of England the highest (-10.5%)
• Drivers living in Uxbridge are the only people to have seen average premiums increase in the past 12 months. However, East London is the postcode with the highest average premiums at £1,628.
Duncan Anderson, Towers Watson's Global Pricing and Product Management leader, commented: “There still have to be question marks over whether rate reductions are premature given what we know about overall market profitability. The fact that the latest statistics from the Institute and Faculty of Actuaries show an 18% increase in the proportion of motor accidents having a personal injury claim continues to cast a lingering shadow over insurers.”
Regional and local comprehensive price movements in the quarter bucked many of the typical trends seen over recent years. For example, drivers in Manchester/Merseyside, who have almost without exception been in the top three regions most adversely affected by price changes every quarter, received the largest average premium decrease in the second quarter of 3.4%. The pricing divide between Scotland and the rest of the UK also closed in a number of areas, with the result that seven of the 10 postcode areas with the largest percentage drop in prices over the last 12 months are now located in England (see table below).
Postcodes with fastest falling prices in the year to the end of June 2012
Motherwell -12.6%
Southend -12.1%
Chelmsford -11.8%
Worcester -11.8%
Gloucester -11.5%
Shrewsbury -11.3%
Bath -11.3%
Dumfries -10.8%
Glasgow -10.8%
Lancaster -10.6%
Gareth Kloet, Head of Motor at Confused.com, said: “Recent price cuts will certainly be welcomed by consumers but overall motoring costs are still tough on hard-pressed household budgets and will encourage drivers to seek out the best deal.”
Visit confused.com at www.confused.com
|
