Car insurance premiums fall but young drivers still in back seat
Car insurance premiums have fallen for the first time in the years, but young drivers are still grappling with hefty increases, according to a closely watched index.
The latest Consumer Intelligence Car Insurance Price Index shows quoted premiums in the year to October fell 1.1 per cent, the first time since January 2022.
Nearly a quarter of British drivers received a quote of between £500 and £749, with around 57 per cent able to obtain a quote for less than £750, an increase from 50 per cent last year.
The figures are the latest evidence car insurance prices are beginning to return to normal, having risen to record levels last year on soaring inflation. Between July and September, the average cost of cover fell by two per cent, according to the Association of British Insurers (ABI).
However, young drivers are still experiencing significant cost hikes, with under-25s seeing a 12.2 per cent rise in quoted premiums in the year to the end of October.
“October marked the first time motorists on average saw lower competitive premiums than the year prior since January 2022,” said Max Thompson, insurance insight manager at Consumer Intelligence.
Thompson added there had been a notable “divergence in premium trends” this year, with the youngest drivers “continuing to see inflation.”
Overall, average quoted premiums have more than doubled since October 2013, the year Consumer Intelligence began its index. London has seen some of the highest rises, and jumped a further 2.9 per cent since January.