Car insurance prices start creeping up again

Car insurance price cuts are slowing down but drivers are still benefiting from falls of 8.5% in the past year, new analysis from insurance data analytics firm Consumer Intelligence shows. 

Its data shows average car insurance bills dropped to £757 with telematics – which rewards customers who drive more safely by making a major contribution to keeping costs under control.

There are signs, however, that premiums are starting to edge up – average prices rose 0.3% in the past three months for all drivers and by 1.3% for the over-50s. Bills across the market are 20.6% higher than five years ago when Consumer Intelligence first started collecting data.

Premiums are still falling for the under-25s and they can expect quotes 14.7% lower than last year although they pay the highest bills at £1,544. The over-50s pay the lowest average bills at £395 although prices have only fallen by 6.2% over the last year.

Across the market 20% of the top five cheapest quotes came from telematics providers with the under-25s the most likely to benefit. Around 59% of the most competitive policies for them are telematics compared with 13% for drivers aged 25 to 49 and 5% for over-50s.

Geography

Across the country the biggest price cuts are in the North West at 12.6% but they pay the second highest bills at £915. Only drivers in London pay more at £1,155 while motorists in the South West have the cheapest deals at £519 marginally ahead of the Scots on £538.

John Blevins, Consumer Intelligence pricing expert said: “The past three months have seen a slowdown in price cuts and premiums have even started rising slightly across most regions.

“Telematics is making a major contribution to keeping prices under control and particularly for the under-25s who are benefiting from more bespoke pricing based on good driving behaviour.

“If the older age groups want to take more control over premiums and to avoid broad-brush price rises based on their age, they could take a look at telematics policies.”

The table below shows the average premiums across the country. Prices are falling slowest in Eastern England at 3.8% a year but drivers in the region pay the third lowest average annual bills at £634.