We see many reports stating that insurance prices are on the increase, however a recent study by Confused.com and professional services firm Towers Watson has established they’re actually declining. According to the survey the cost of car insurance has fallen by over 7% after years of steady rises. Average annual comprehensive insurance in spring (April to June) this year was £797, compared with £816 in the first three month of the year – a decline of 2.3%.
Young men are still suffering
Despite the fall, men on average are still paying £110 more than women on car insurance. Surprisingly there were big falls for young drives (17 – 20 year olds), however at £2,491 the price of comprehensive insurance is still extremely high. Obviously location is an important factor on the cost of insurance. The average price for 17 to 20-year-old male drivers in Manchester/Merseyside is £5,394, yet male drivers in this age range pay a more modest £2,999 in Central Scotland.
Women aged 17 to 20 are quoted £1,878 on average for comprehensive insurance, while men of the same age suffer average insurance quotes of £3,596. Regionally, the west of England has seen the biggest fall in prices, as average premiums for comprehensive cover dropped by 10.5% in spring 2012.
Elderly drivers are winning
Elderly drivers, those aged 71 or over, pay the least at an average £426 a year. They also enjoyed the biggest decline in the cost of car insurance over the year, a fall of 8.1 per cent.
Gareth Kloet, head of car insurance at Confused.com, said: “Competition between car insurance providers is currently very high. “We anticipate that drivers will continue to reduce their annual mileage as a result of high motoring costs and seek cheaper vehicles in their search for more affordable cover.”
Have you discovered a decline in your car insurance? Let us know below.