MoneyMagpie

May 17

Rejoice – car insurance premiums are falling!

Quarterly data released by the UK’s leading price comparison website, MoneySuperMarket, has revealed a significant drop in the price of car insurance, with the average fully comprehensive policy falling £70 in the first three months of 2018, from £574.11 to £504.

The data is based on analysis of 1.7 million car insurance quotes on MoneySuperMarket between January and March 2018. It suggests insurers are reducing premiums following government announcements on reforms to the way personal injury compensation payments are calculated and how whiplash claims are handled by the courts.

Motorists in Colchester saw their premiums fall most in the first three months of 2018 (18.3 per cent), from £481.04 to £392.94 – a £88.10 fall. Those in Medway, Kent, and Halifax, Yorkshire, saw their premiums decrease 17.5 per cent and 14.6 per cent respectively.

East London remains the most expensive place to insure your car, with premiums sitting at £1,010.24, while the Galashiels in Scotland is the cheapest at £309.70.

Car insurance prices

Women saw the average cost of a fully comprehensive policy drop substantially quarter-on-quarter (14.8 per cent in Q1 2018 vs Q4 2017), from £528.76 to £450.43, while men saw a fall of 9.8 per cent, from £609.66 to £550.10.

Kevin Pratt, consumer affairs expert at MoneySuperMarket, commented: “For once, it’s good news for hard-pressed motorists after months of price increases. Last year, premiums rocketed because of changes to the way personal injury compensation payments are calculated – insurers increased prices to help fund larger pay-outs to victims of accidents. Thanks to a government u-turn, the impact of the change on compensation awards will be reduced at some point this year, allowing insurers to ease premium hikes.”

To find out how London compares to the rest of the UK in terms of car insurance premiums you can take a look MoneySuperMarket’s price comparison index here – https://www.moneysupermarket.com/car-insurance/price-comparison-index/

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