Despite the drop, the price of a typical annual policy remains high
UK drivers’ under-25 have seen their insurance premiums drop 18.1% in the last 12 months ending October 2021, yet the price of a typical annual policy remains eye-wateringly high at £2,342, according to the latest analysis from pricing insights company Consumer Intelligence.
Insurance costs, however, have remained more constant over the same period for the two other age demographics – premiums nudged down by 1.2% for the over-50s, typically costing £600, and 0.8% among those aged 25 to 49 – equating to an average of £761.
Looking at type of cover, drivers using their vans as a car substitute for everyday driving saw the biggest falls to their premiums of 4.8%.
Despite this, drivers who are classified under social, domestic, and pleasure (SDP) policies paid the highest annual premiums out of the two groupings – £1,039.
Business users recorded lower premium reductions of 2.9%, paying £915 on average for an annual van insurance policy.
Consumer Intelligence pricing expert John Blevins said: “Telematics is a big driver for the premium deflation seen by younger drivers. A number of telematics brands have dropped their prices over the last quarter, bringing the average premium down for this age group.”
On a longer-term view, average premiums have now increased 31.9% since April 2014 when Consumer Intelligence first started collecting data.
Van drivers aged 25 to 49 and over-50 stomached the biggest rises over the 7-year period – with hikes of 49.8% and 47.9% respectively – while drivers under-25 have seen premiums fall 26.8%.
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