‘This is a glimmer of good news for drivers who are facing rising fuel prices and increased vehicle excise duty rates,’ says AA’s Michael Lloyd
The price of car and home insurance premiums has fallen in the past three months, according to research by the AA.
Car insurance premiums peaked at their highest ever during the second quarter of 2017 but have fallen steadily since then to an average quoted premium of £660.64, which is 2 per cent less than in the final three months of 2017.
Average quotes for home buildings, contents and combined policies all fell over the quarter but remain higher than a year ago, according to the research.
The AA’s index reflects an average of the five cheapest prices from a range of insurers quoted by brokers, price comparison sites and direct against a fixed nationwide basket of customers.
Young drivers continue to pay the largest premiums for their cover. Men aged 17 to 22 pay on average £1,766.17 for a year’s comprehensive cover, while women in the same age group can expect to pay £1,505.28.
The cheapest age to insure a car is 60 to 69, with an average quoted premium of £403 with a small difference between genders. Above this age group, premiums begin to rise. Standalone buildings policies increased over 12 months to an average of 5.1 per cent to £117.47, despite a small fall over the quarter of 0.4 per cent.
Contents policy quotes increased by 24p compared with this time last year, but over the quarter fell 1.5 per cent or 89p.
The average quote for a combined buildings and contents policy increased by 4.8 per cent, or £7.36, to £161.75 over the past year, although over the first quarter of 2018 it fell by 0.3 per cent or 42p.
Michael Lloyd, the AA’s director of insurance said: “This is a glimmer of good news for drivers who are facing rising fuel prices and increased vehicle excise duty rates.
“Insurers’ confidence in offering lower quotes is boosted by the Government’s Civil Liability Bill commitment to review the so-called Ogden, or discount, rate which affects the value of compensation payouts to severely injured victims of car crashes, as well as clamp down on the whiplash claim culture.
“This particularly affects premiums for young drivers who tend to be involved in more catastrophic crashes, and pay much higher premiums, than any other age group.