19% reduction in car insurance premiums
Discussion
http://www.towerswatson.com/en-GB/Press/2014/04/UK...
LONDON, 9 April 2014. Motor insurance prices continued their recent downwards trend during the first quarter of 2014 after having shown signs of bottoming out at the end of 2013, according to the latest Confused.com Motor Insurance Price Index in association with Towers Watson.
A reduction of 7.5% over the last quarter means that comprehensive prices have fallen by around 19% in the last 12 months. Over the last year, average prices across the UK have fallen by £140 to £596. The last time that the average premium stood below £600 was at the end of 2009.
Third party, fire and theft (TPFT) customers, currently quite a small group, have seen an average 18% decrease since April 2013, thanks in part to a 8.9% quarterly price reduction since the turn of 2014. This has resulted in a typical £210 annual saving on a TPFT policy, taking the average premium back under the £1,000 level to £959.
The scale of the price reductions in the first quarter of 2014 has reversed the recent trend. A fall of 1.1% in comprehensive premiums in the final quarter of 2013, after previous quarterly reductions of 3.9% and 7.9%, had suggested a more cautious approach from motor insurers to developments in the market, including the ban on referral fees and restrictions on claims legal costs.
Commenting on the latest price movements, Stephen Jones, UK Head of P&C Pricing at Towers Watson, said: “This quarter’s price reductions are sizeable, even allowing for the fact that motor insurers may wish to be tactically competitive around this time of year due to growing new vehicle registrations and the pattern of market renewal dates.”
He added: “Further contributing factors could include optimism surrounding potential reforms in the medical assessment of whiplash and action which may be taken on third party repair and hire costs. Another factor to consider is that some insurers declared increased reserve releases when announcing their year-end results, perhaps indicating growing confidence in their understanding of the claims cost impact of recent legislative changes including LASPO.”
One increasingly significant feature of the quotes data underlying the index is the growing representation of telematics policies amongst the cheapest prices. Stephen Jones noted: “As well as a growing number of telematics providers on price comparison websites, the frequency with which they are coming up with the cheapest quote, particularly for young drivers, is rising. Two out of every three drivers aged below 30 are being offered a competitively priced telematics product.”
The benefits of falling prices have been particularly large for the youngest drivers, where telematics policies have the greatest market penetration. The average premium for a 17-year-old has dropped by nearly 39% in the last year, while 18-year-olds have also seen reductions of over 30% on average.
On a regional basis, comprehensive policyholders in Manchester and Merseyside have received the largest annual average price cuts in the country, amounting to 23% or a price saving of nearly £250. These areas have previously been associated with particularly high third-party claims costs and so would be expected to see greater benefit from LASPO and related reforms.
Gemma Stanbury, Head of Car Insurance at Confused.com says:
“Comprehensive car insurance prices have fallen by more than 19% in the last year, bringing premiums to an average of £596. This is the first time we’ve seen premiums dip below £600 since 2009, so it really is welcome news for motorists – particularly as these price decreases are being seen across the board.
“The fact that these falling prices are being experienced by drivers of all ages and genders, right across the UK, means that motoring is becoming more affordable for everyone. This is great news for young drivers in particular - 17 year olds have seen fantastic savings over the past year of nearly £1,400 on average.”
LONDON, 9 April 2014. Motor insurance prices continued their recent downwards trend during the first quarter of 2014 after having shown signs of bottoming out at the end of 2013, according to the latest Confused.com Motor Insurance Price Index in association with Towers Watson.
A reduction of 7.5% over the last quarter means that comprehensive prices have fallen by around 19% in the last 12 months. Over the last year, average prices across the UK have fallen by £140 to £596. The last time that the average premium stood below £600 was at the end of 2009.
Third party, fire and theft (TPFT) customers, currently quite a small group, have seen an average 18% decrease since April 2013, thanks in part to a 8.9% quarterly price reduction since the turn of 2014. This has resulted in a typical £210 annual saving on a TPFT policy, taking the average premium back under the £1,000 level to £959.
The scale of the price reductions in the first quarter of 2014 has reversed the recent trend. A fall of 1.1% in comprehensive premiums in the final quarter of 2013, after previous quarterly reductions of 3.9% and 7.9%, had suggested a more cautious approach from motor insurers to developments in the market, including the ban on referral fees and restrictions on claims legal costs.
Commenting on the latest price movements, Stephen Jones, UK Head of P&C Pricing at Towers Watson, said: “This quarter’s price reductions are sizeable, even allowing for the fact that motor insurers may wish to be tactically competitive around this time of year due to growing new vehicle registrations and the pattern of market renewal dates.”
He added: “Further contributing factors could include optimism surrounding potential reforms in the medical assessment of whiplash and action which may be taken on third party repair and hire costs. Another factor to consider is that some insurers declared increased reserve releases when announcing their year-end results, perhaps indicating growing confidence in their understanding of the claims cost impact of recent legislative changes including LASPO.”
One increasingly significant feature of the quotes data underlying the index is the growing representation of telematics policies amongst the cheapest prices. Stephen Jones noted: “As well as a growing number of telematics providers on price comparison websites, the frequency with which they are coming up with the cheapest quote, particularly for young drivers, is rising. Two out of every three drivers aged below 30 are being offered a competitively priced telematics product.”
The benefits of falling prices have been particularly large for the youngest drivers, where telematics policies have the greatest market penetration. The average premium for a 17-year-old has dropped by nearly 39% in the last year, while 18-year-olds have also seen reductions of over 30% on average.
On a regional basis, comprehensive policyholders in Manchester and Merseyside have received the largest annual average price cuts in the country, amounting to 23% or a price saving of nearly £250. These areas have previously been associated with particularly high third-party claims costs and so would be expected to see greater benefit from LASPO and related reforms.
Gemma Stanbury, Head of Car Insurance at Confused.com says:
“Comprehensive car insurance prices have fallen by more than 19% in the last year, bringing premiums to an average of £596. This is the first time we’ve seen premiums dip below £600 since 2009, so it really is welcome news for motorists – particularly as these price decreases are being seen across the board.
“The fact that these falling prices are being experienced by drivers of all ages and genders, right across the UK, means that motoring is becoming more affordable for everyone. This is great news for young drivers in particular - 17 year olds have seen fantastic savings over the past year of nearly £1,400 on average.”
At renewal, we had our 2 cars on a multicar policy. 11yrs ncb on one, 5yrs ncb on the other. My wife was the policy holder and I was named driver. Main drivers notified against the relevant car for each of us. I am the RK of both and wanted to start accruing my own ncb.
So with no ncb in my name and moving the 11yrs ncb from "my" car to my wife's, keeping the 5yrs banked if we get a fun car, I saved 1/3 on the combined premiums with Adrian Flux. Lower excess now. Also notified of IAM membership. I can't believe that the IAM membership was enough to bring the price so low that even with losing the ncb against "my" car, I was still saving money.
So with no ncb in my name and moving the 11yrs ncb from "my" car to my wife's, keeping the 5yrs banked if we get a fun car, I saved 1/3 on the combined premiums with Adrian Flux. Lower excess now. Also notified of IAM membership. I can't believe that the IAM membership was enough to bring the price so low that even with losing the ncb against "my" car, I was still saving money.
PurpleMoonlight said:
Possibly, but you have to put in the work to achieve it.
I'm not in London admittedly, but my policy renewed in Dec 2013 and the holding insurer wanted to increase the premium by 25%.
Went to a comparison site and reduced it from what I was paying by 33%
Definitely this. I used to be one of the CBA who just went along with the (large national broker's) renewal quotes.I'm not in London admittedly, but my policy renewed in Dec 2013 and the holding insurer wanted to increase the premium by 25%.
Went to a comparison site and reduced it from what I was paying by 33%
Now this year, with very little effort :
330Ci, quoted £245 by broker, after haggle down to £215, on-line (major 'Yorkshire' bank) £138 with £25 cashback!!
Westie, quoted £215 by specialist, moved to 'the other' specialist, £169
2 x Honda CBR600, quoted £230 by broker, down to £180 after pointing out this price available on-line by bike specialist.
And it will come down even more if Ph'ers stop recommending accident management companies and solicitors everytime there's a trivial bump.
There's been little difference with he way the northern circuit (Liverpool and Birkenhead) Courts grossly overvalue injuries and lend every support to the local issuing claimant lawyers in their judgements, (those who send in the Court fees and keep the courts "profitable!")just that those swine with L in their postcode are picking up slightly fewer referrals at the moment. If you could all stop using solicitors who have NE in their postcode as well, who's every single client historically suffers "ptsd" as a result of a referral to the daughter of the senior partner who happens to be a psychologist, and who's latest scam is to find every claimant *may* have tinnitus as well as a result of a sub 5mph rear end collision, requiring referral to their own medical agency, that would also help.
Its not insurers who raise your premium ultimately, its credit hire co's and solicitors finding new ways to circumvent every attempt to limit them to reasonable legal fees.
There's been little difference with he way the northern circuit (Liverpool and Birkenhead) Courts grossly overvalue injuries and lend every support to the local issuing claimant lawyers in their judgements, (those who send in the Court fees and keep the courts "profitable!")just that those swine with L in their postcode are picking up slightly fewer referrals at the moment. If you could all stop using solicitors who have NE in their postcode as well, who's every single client historically suffers "ptsd" as a result of a referral to the daughter of the senior partner who happens to be a psychologist, and who's latest scam is to find every claimant *may* have tinnitus as well as a result of a sub 5mph rear end collision, requiring referral to their own medical agency, that would also help.
Its not insurers who raise your premium ultimately, its credit hire co's and solicitors finding new ways to circumvent every attempt to limit them to reasonable legal fees.
Mine has come down, but I assume that's only due to an additional year on my age, and an additional year to my no claims bonus.
£600 is a pretty shocking average figure really. I would have thought most people over 25 with a couple of years no claims or more would be paying well under this figure? Obviously depending what they are insuring.
I would also expect the rise in small supermini's/ECO-cars to have brought average premiums down? General trend is bigger the engine, higher the insurance group, more expensive the premium?
£600 is a pretty shocking average figure really. I would have thought most people over 25 with a couple of years no claims or more would be paying well under this figure? Obviously depending what they are insuring.
I would also expect the rise in small supermini's/ECO-cars to have brought average premiums down? General trend is bigger the engine, higher the insurance group, more expensive the premium?
CallorFold said:
Mine has come down, but I assume that's only due to an additional year on my age, and an additional year to my no claims bonus.
£600 is a pretty shocking average figure really. I would have thought most people over 25 with a couple of years no claims or more would be paying well under this figure? Obviously depending what they are insuring.
I would also expect the rise in small supermini's/ECO-cars to have brought average premiums down? General trend is bigger the engine, higher the insurance group, more expensive the premium?
1970 called, it wants your insurance rate book back. £600 is a pretty shocking average figure really. I would have thought most people over 25 with a couple of years no claims or more would be paying well under this figure? Obviously depending what they are insuring.
I would also expect the rise in small supermini's/ECO-cars to have brought average premiums down? General trend is bigger the engine, higher the insurance group, more expensive the premium?
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