Car insurance price rises are in reverse following two consecutive quarters of rising premiums, according to Confused.com and Willis Towers Watson.
The latest Confused.com Car Insurance Price Index showed that comprehensive car insurance premiums have fallen for the first time since the first half of 2018, with UK motorists now paying £762 on average, some £5 less than they were paying this time last year.
Prices fell by 1% (£12) in the last three months. This decrease brings an end to the price rises recorded across consecutive quarters from Q3 2018 to Q4 2018, which saw premiums rise to £774 at the end of last year.
Stephen Jones, UK property and casualty leader at Willis Towers Watson, which sponsors the Confused.com Car Insurance Price Index, commented: “The fluctuation in premium levels seen across recent quarters reflects ongoing uncertainty surrounding the impact of the Civil Liability Bill and the anticipated adjustment to the Ogden rate, following recent changes to the law around whiplash claims passed in December 2018 and due to come into force next year.”
Steve Fletcher, head of data insight at Confused.com, added: “The average price of comprehensive car insurance premiums has remained steady since late 2016, when you do not take in account the sudden reaction to the Ogden rate change. And this could be a reflection of the economic uncertainty the UK has faced over the past couple of years.”
“Looking at the trend of car insurance, a drop in prices at the beginning of the year is commonplace—only once have we seen an increase in prices in Q1 since 2012. But with claims costs increasing, new technologies entering the car market we can expect an upturn in premiums is on the horizon.”