The cost of car insurance policies fell £13 on average during the first three months of 2018, according to Confused.com’s latest price index.
The price comparison site’s car insurance price index for the first three months of 2018 revealed the 2% percent fall, with UK drivers now paying £768 on average for an annual car insurance policy.
This slight drop was thanks to the government’s Civil Liability Bill being published recently, according Confused.com.
“Insurers seem to have softened prices as the government announces a review of the Ogden Rate discount, expected in April 2019, which could mean insurers pay out less when drivers make a claim,” according to the executive summary of Confused.com’s latest price index.
“The Government has also announced a reform to the way whiplash claims are calculated and paid, which may have also had an impact.”
“The significance of these announcements can be seen within the last three months (Q1 2018) especially, as Confused.com’s index reveals prices typically dropped by £59 (-7%).”
The CEOs 26 major insurers signed a pledge promising to pass on savings from the Civil Liability Bill to customers. The government claimed that drivers would save as much as £35 per year on the cost of their policies.
Confused.com CEO Louise O’Shea said: “Finally drivers have had some good news with the end of rising car insurance costs in sight. However, it’s clear that many motorists are not seeing these savings reflected in their renewal letters, so it’s more important than ever to shop around if they want to get a better deal.”
Willis Towers Watson uses more than six million quotes to compile each quarter’s insurance price index on behalf of Confused.com.