The average price of a car insurance policy in the UK dropped by 15 per cent in the last year, new figures have revealed.

The data from and Towers Watson found that the cost of a policy fell by £17 in the second quarter of the 2014. The average cost of an annual car insurance policy is now £579, down from £678 12 months ago and well below the highs of £858 three years ago.

New and comprehensive policies fell by 2.8 per cent between March and June this year. Meanwhile third party, fire and theft policyholders enjoyed a reduction of 0.3 per cent on average.

The biggest winners were found to be women aged between 17 and 20; they witnessed a 33 per cent year-on-year fall in premiums. Regardless of age, women saw a 17 per cent fall in insurance prices while for men the fall was just 13 per cent.

Stephen Jones, Towers Watson UK P&C pricing head, commented on the findings: "This is a record 10th consecutive quarter in which prices have fallen overall even though some parts of the motoring population may not have shared in the latest reductions. What it shows in particular is that the UK motor market is still competing and innovating hard in the younger driver segment.

"The publication of reports by both the Competition and Markets Authority on insurance repair costs and by the Transport Select Committee on whiplash and small claims have come too late to have much, if any, effect on this latest quarter, but it will be interesting to see if the proposals they contained influence insurers' actions over the next quarter.”

If you enjoyed this post, make sure you subscribe to my RSS feed!
Bookmark and Share