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Motor insurance premium costs have fallen in recent months, analysis finds

Vicky Shaw, PA Personal Finance Correspondent
·2-min read

Motor insurance prices have decreased by 2.5% or around £20 on average over the previous six months, analysis has found.

Reduced claims volumes with fewer drivers on the roads have helped to bring down the costs, according to Consumer Intelligence, which released the data.

Across Britain, the average annual premium sits at £816, which is just 1.1% lower than a year earlier as prices had been rising before the coronavirus crisis struck.

Harriet Devonald, product manager at Consumer Intelligence said: “We are currently seeing premiums decreasing in all our age groups.”

The analysis found premiums are down by 1.9% compared with a year ago for the under-25s, the biggest annual decline of any age group.

But younger drivers continue to pay the most for car insurance, at £1,954 on average.

In comparison, the over-50s typically pay £370 while those aged 25 to 49 hand over £628 for an annual policy.

Ms Devonald added: “Even with telematics-based policies working hard to keep pricing affordable for the youngest drivers, there is still a huge difference when compared to the over-50 and 25 to 49-year-old sectors.”

Motor insurance premiums are not lower in all parts of Britain compared with a year earlier.

Over the previous 12 months, prices in London had increased by 3.8%, the analysis found.

In Yorkshire and the Humber they have increased by 1.4% and in Eastern England they have lifted by 1.2%.

The largest falls have been the North East (4.4%), East Midlands (3.9%) and the West Midlands (3.8%). London (£1,499) remains the costliest place for car insurance, with Scotland (£513) the cheapest UK region.

The analysis compared prices offered for 3,600 people by major price comparison websites and direct insurers.

The cheapest five prices for each person were compared to produce the index.

Here are price changes seen over the previous 12 months regionally, comparing November 2019 with November 2020, and the average motor insurance premium, according to Consumer Intelligence:

– London, 3.8%, £1,449

– Yorkshire and the Humber, 1.4%, £895

– Eastern England, 1.2%, £746

– Wales, minus 0.6%, £591

– East Midlands, minus 0.7%, £719

– Scotland, minus 1.1%, £513

– South East, minus 2.6%, £726

– North West, minus 2.8%, £1,160

– West Midlands, minus 3.4%, £776

– South West, minus 3.9%, £473

– North East, minus 5.4%, £702