Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • July 2015
07

Average car insurance premium increases for the first time in three years

Open-access content Thursday 16th July 2015 — updated 5.13pm, Wednesday 29th April 2020

The average car insurance premium has increased to £600 in Q2 2015, which is £21 more then they were this time last year according to research.

2

Confused.com said drivers enjoyed three years of continually falling premiums, but in the last 12 months saw an average increase of 3.6%. 

The average premium for men now costs £627 - a year-on-year increase of £25 (4%), while women now pay £566 for car insurance, which is a £15 increase (3%).

Confused.com's car insurance price index, produced in association with Towers Watson, said most drivers were facing increases across the UK but drivers aged 17 had seen their premiums reduced by 6.4% (£128).

This means this age group has its "lowest ever premiums", with the average premium at £1,869. This is 50% less than in Q3 in 2013 when policies for this group cost on average £3,729.

Compared with other ages, drivers aged 59 and 63 have seen the greatest average annual premium increase, at 7.8%. Average premiums for 59-year-olds have increased by £28 to £384 and 63 year-olds now pay £371, a £27 increase from Q2 2014.

Steve Sanders, finance director at Confused.com said: "Despite enjoying a brief reprieve in the first quarter of 2015, market movements in the last 12 months suggest consumers should prepare themselves for price rises to continue for the rest of 2015. The last time we saw this sort of premium change pattern we were at the beginning of three years of consecutive comprehensive premium increases."

Karl Murphy, UK property and casualty insurance leader at Towers Watson, said improving economic conditions could be a "double-edged sword" as increasing car sales and road usage had a direct impact on higher accident levels and claims figures, therefore pushing premiums "steadily upwards".

Towers Watson said motor vehicle usage levels reached a total of 312.4 billion miles in the year ending March 2015. This is an increase of 1.8% compared to the same period in 2014, according to the Department for Transport.

Murphy said: "Without doubt, the biggest pricing issue for motor insurers is the level of claims and how, potentially, regulation and a generally improving national economy may affect this."

Last week chancellor George Osborne announced in his budget statement a rise in insurance premium tax to 9.5% from November. The industry estimated this would add between £12-13 to an annual car insurance bill. 

This article appeared in our July 2015 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

Home insurance prices down by more than a quarter since 2010

Premiums for home insurance have fallen 27% in the past five years, according to analysis by moneysupermarket.com.
Monday 13th July 2015
Open-access content
2

'Days of cheap car insurance premiums are over'

An increasing number of claims means price rises in motor insurance are inevitable, says the AA.
Thursday 23rd July 2015
Open-access content
2

Insurance premium tax rise could see half of policyholders switch providers

Up to 56% of insurance customers will consider switching providers as a result of the increase in insurance premium tax (IPT), according to research.
Tuesday 28th July 2015
Open-access content
2

ACE to buy Chubb for $28.3bn in second biggest ever insurance sector deal

Zurich-based insurer ACE has agreed to acquire property and casualty insurance firm Chubb for $28.3bn (£11.8bn).
Friday 3rd July 2015
Open-access content
2

Insurance frauds hit record high of £1.32bn

Insurers uncovered an average of 350 frauds worth £3.6m each day during 2014 as the value of scams reached a record high.
Tuesday 14th July 2015
Open-access content
2

Birmingham 'number one' for jewellery insurance claims

Birmingham headed claims for lost and stolen jewellery in the UK last year in terms of the value and volumes of claims made, a study has found.
Tuesday 21st July 2015
Open-access content

Latest from General Insurance

td

Brain power

The latest microchips mimic cerebral function. Smaller, faster and more efficient than their predecessors, they have the potential to save lives and help insurers, argues Amarnath Suggu
Wednesday 1st March 2023
Open-access content
bl

'Takaful' models of Islamic insurance

Ethical, varied and a growing market – ‘takaful’ Islamic insurance is worth knowing about, wherever you’re from and whatever your beliefs, says Ali Asghar Bhuriwala
Wednesday 1st February 2023
Open-access content
il

When 'human' isn't female

It was only last year that the first anatomically correct female crash test dummy was created. With so much data still based on the male perspective, are we truly meeting all consumer needs? Adél Drew discusses her thoughts, based on the book Invisible Women by Caroline Criado Perez
Wednesday 1st February 2023
Open-access content

Latest from July 2015

Around 8,000 small and micro employers have no plans for auto-enrolment

There are around 8,000 small and micro employers due to stage between June and November who have not drawn up plans to meet their auto-enrolment duties.
Friday 31st July 2015
Open-access content
ta

Multinationals face extra hurdles under Solvency II

Multinational insurers with offices outside the EU will need to define how they are supervised as a group under the Solvency II directive.
Friday 31st July 2015
Open-access content

Pension industry 'must sort out' exit fees, says Downing Street

The UK government is looking at ways to address exit fees for those looking to access their pensions.
Thursday 30th July 2015
Open-access content

Latest from small_opening_image

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 07

Around 8,000 small and micro employers have no plans for auto-enrolment

There are around 8,000 small and micro employers due to stage between June and November who have not drawn up plans to meet their auto-enrolment duties.
Friday 31st July 2015
Open-access content
ta

Multinationals face extra hurdles under Solvency II

Multinational insurers with offices outside the EU will need to define how they are supervised as a group under the Solvency II directive.
Friday 31st July 2015
Open-access content

Pension industry 'must sort out' exit fees, says Downing Street

The UK government is looking at ways to address exit fees for those looking to access their pensions.
Thursday 30th July 2015
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Exposure Management Analyst

London, England
£40000 - £50000 per annum
Reference
148639

Pricing - Casualty Actuary

London (Central)
£128K + bonus + benefits
Reference
148638

Reporting Contractor

Negotiable
Reference
148636
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ