Car insurance prices fall for the first time in three years
Reforms to whiplash law and personal injury compensation ¬lead to a £13 cut in the average policy – but savings aren’t being passed on to loyal customers
The price of car insurance in the UK has fallen for the first time since 2014, it was announced. Figures gathered by insurance comparison website Confused.com show that the average price of a policy has fallen by 2 per cent – giving customers an average saving of £13.
A review of the Ogden rate, the system by which personal injury compensation is decided, appears to have reduced insurance rates, while reform to whiplash claims will also have had an impact. The legislation aims to take low-payout whiplash cases out of the courts and into a separate arbitration system – aiming to cut down on the number of fraudulent cases. Whiplash cases cost the insurance industry up to £2 billion per year.
Confused.com notes that despite the recent price drop, insurance is still far pricier than it has been in the past. Back in 2008, the average policy cost just £499.
It also points out the disparity in the prices different road users pay. Men, for example, pay on average £95 more than women, despite discriminating on sex being an illegal practice within the industry.
Old and young drivers have also seen an increase. Motorists in the 68+ age category have seen their premiums rise by £40, while 21 year olds have witnessed a £38 rise.
Louise O’Shea, CEO of Confused.com, says: “Our car insurance price index finally delivers some good news for drivers with the end of rising 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.”
