Average prices drop 8.5% in a year but start to edge up
Telematics policies are helping drivers control costs
Car insurance price cuts are slowing down but drivers are still benefiting from falls of 8.5% in the past year, new analysis from insurance data analytics expert Consumer Intelligence shows.
Its data shows average car insurance bills dropped to £757 with black box technology – so-called telematics – which rewards customers who drive more safely by making a major contribution to keeping costs under control.
There are signs however that premiums are starting to edge up – average prices rose 0.3% in the past three months for all drivers and by 1.3% for the over-50s. Bills across the market are 20.6% higher than five years ago when Consumer Intelligence first started collecting data.
Premiums are still falling for the under-25s and they can expect quotes 14.7% lower than last year although they pay the highest bills at £1,544. The over-50s pay the lowest average bills at £395 although prices have only fallen by 6.2% over the last year.
Across the market 20% of the top five cheapest quotes came from telematics providers with the under-25s the most likely to benefit. Around 59% of the most competitive policies for them are telematics compared with 13% for drivers aged 25 to 49 and 5% for over-50s.
Across the country the biggest price cuts are in the North West at 12.6% but they pay the second highest bills at £915. Only drivers in London pay more at £1,155 while motorists in the South West have the cheapest deals at £519 marginally ahead of the Scots on £538.
John Blevins, Consumer Intelligence pricing expert said: “The past three months have seen a slowdown in price cuts and premiums have even started rising slightly across most regions.
“Telematics is making a major contribution to keeping prices under control and particularly for the under-25s who are benefiting from more bespoke pricing based on good driving behaviour.
“If the older age groups want to take more control over premiums and to avoid broad-brush price rises based on their age, they could take a look at telematics policies.”