The overall picture - dramatic 24% drop in car insurance prices
The latest Confused.com Car Insurance Price Index, in association with Towers Watson reveals that comprehensive car insurance prices have fallen by a dramatic 24% since prices peaked in Q2 2011. (How is this calculated?)
Inflation up while car insurance prices fall
The average comprehensive car insurance price now stands at £652 as of Q3 2013, compared with £858 when prices were at an all-time high in Q2 2011. This considerable price decrease of £206 is welcome news for motorists.
For third party fire and theft cover only, average premiums for Q3 2013 stood at £1,057, showing a decrease of 6.5% yr-on-yr. This is also a 4.6% reduction quarter on quarter for car insurance prices.
Despite rising inflation costs over the last two years, British motorists have been thrown a lifeline in the form of falling car insurance premiums. Since June 2011, inflation has risen by more than 6%, whereas comprehensive car insurance premiums have bucked this trend by falling 24%.
Gender divide in pricing still exists for young people
Although average car insurance premiums have been dropping, the latest Confused.com Car Insurance Price Index, in association with Towers Watson paints a very different picture for young female drivers, who have been hit the hardest when it comes to the cost of car insurance. The average quoted comprehensive premiums for 17-20 year old women rose by a massive 9.1% across the UK over the last 12 months.
Young women hardest hit
As a result car insurance premiums for females of this age group now stand at a staggering £1,862. In stark contrast, quoted prices for 17-20 year old men have plummeted by an average of 29.2% over the same period. Male motorists of this age group have seen their car insurance costs fall significantly by an average of £969, decreasing from £3,314 (Q3 2012) to £2,345 (Q3 2013).
When looking at the regional divide, all areas in the UK are seeing a significant decrease yr-on-yr. The biggest yr-on-yr decreases in insurance premiums in Q3, 2013 can be seen in Scotland, Manchester/Merseyside and the south east.
Top 10 regional comprehensive insurance decreases year-on-year
Regionally, the most expensive comprehensive car insurance premium label falls to Inner London, where the average cost stands at £1,083 - £431 more than the national average. This is closely followed by premium prices in Manchester/ Merseyside, outer London and the west Midlands where motorists can expect to pay in excess of £800 on average.
Five most expensive regions for comprehensive car insurance