The average price that drivers are paying for motor insurance in the UK remains at a four-year low, according to the Association of British Insurers (ABI).
The ABI's findings – which are based on what drivers actually pay, rather than what they are quoted – show that the average cost for comprehensive car insurance was £460 in the third quarter, which is the lowest level in four years.
The figure remains unchanged from the previous three months, and is £8 lower than in the same quarter last year.
“While lockdown restrictions eased and road traffic rose during the period, our latest premium tracker shows that motorists continued to benefit from fewer road crashes, and a very competitive market,” said Laura Hughes, the ABI’s general insurance manager.
“However, continued cost pressures, including rising repair bills and the delay in introducing personal injury reforms, mean that motorists should continue to shop around to ensure they’re getting the best deal for their needs.”
This comes after research by Confused.com – based on price data compiled from almost six million customer quotes per quarter – found that motor insurance prices have fallen by 2% over the last year.
And they could be set to fall further after the Financial Conduct Authority (FCA) announced in September that it is looking to ban insurers from increasing premiums for existing policyholders, known as 'price walking'.
Louise O’Shea, CEO at Confused.com, said: “It’s been a turbulent few months for the world of car insurance and it’s likely to remain that way for some time as insurers try to adapt to dramatic and constant changes in driver behaviour, not to mention how they navigate the much-needed changes announced by the FCA last month.
“The FCA is making proposals which is expected to make switching even easier by streamlining the auto-renewal cancellation process, so we may see people taking advantage of this as they become increasingly sensitive to price.”
Image credit: iStock
Author: Chris Seekings