01 Aug, 2011
Confused.com/Towers Watson Car Insurance Price Index reveals:
Average policy for a 17-20 year old single male is now more than £4,000
Car insurance costs for 17-20 year olds have crashed through the £4,000 barrier, with the average 17-20 year old male now paying a staggering £4,006 per year for comprehensive cover.
This is the first time since the Confused.com/Towers Watson Car Insurance Price Index began in 2006 that average annual car insurance costs for young men have exceeded £4,000.
Bizarrely, young male drivers in this age bracket see their car insurance costs reduce by around £1,000 if the driver is married and adds their partner to the policy.
In order to afford a £4,000 a year premium and cover the cost of running a car, the average single male would need to spend £6,500 a year – almost half of the average salary of full-time employees at this age^. This effectively prices them out of the market.
Gareth Kloet, Head of Car Insurance for Confused.com commented: “For young male drivers it has never been more important to shop around for the best price. Our consumer research shows that 50% of under 25s could save up to £556 on car insurance* by using Confused.com. This is one way to help combat these rises.”
The news isn’t only bad for young drivers though. The average cost of a comprehensive car insurance policy across the UK stands at £858 (as of the end of June 2011), marking a year on year rise of £170.
Despite the huge increase in the last twelve months, prices are still continuing to rise. In Q2 of 2011, prices inflated by an average of 25% compared to Q2 2010.
Statistics from Quarter 2 of 2011 tell us that:
- The average cost of comprehensive cover in the UK is now £858, up £22 in the last 3 months and up £170 in the last 12 months.
- The annual rate of price inflation for comprehensive cover is now 25%.
- The average price of a comprehensive policy increased 2.7% across the UK in Q2, with drivers in Northern Ireland hit hardest with a 5.1% increase.
- The average price of a comprehensive car insurance policy rose by 2.7% in the second quarter of 2011, the fourth consecutive quarter in which price rises have been less than in the previous quarter.
- Third party, fire and theft (TPFT) cover increased the least in Q2 by just 1%, but the cost a TPFT policy is still up 33% in the last year.
- The biggest increases this quarter have been seen among the 29-33 year old age group.
Over 4 million quotes are used in the construction of each quarter’s insurance price index - this makes it the most comprehensive insurance index in the UK.
^Office for National Statistics, Annual Survey of Hours and Earnings 2010; average wage of full-time employed 16-21 year olds is £14,833
*Based on online independent research, Consumer Intelligence (June ’11). 50% of consumers, aged 17 - 25, could achieve this saving.
For further information:
Press Office, Confused.com 07551 005877
Laura Piscaer, Towers Watson 020 7227 2667 / 07827 953969
Notes to editors
About the Index
In line with the draft Office of Fair Trading (OFT) commitments on the use of competitor price data, the prices used for calculating the index has been changed from this quarter to an average of the best five quotes received on Confused.com. Prior quarter and annual comparisons in this release are made on this basis but will not necessarily match figures from previous editions of the Index.
Confused.com is one of the UK’s biggest and most popular price comparison services. Launched in 2002, it generates over two million quotes per month. It has expanded its range of comparison products over the last couple of years to include home insurance, travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance.
Confused.com has a panel of over 100 motor insurance providers. 50% of consumers could save up to £225.61 on their annual car insurance policy. Based on online independent research by consumer intelligence (June 2011).
Confused.com is not a supplier, insurance company or broker. It provides a free, objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com’s service is based on the most up-to-date information provided by UK suppliers and industry regulators.
Confused.com is owned by the Admiral Group plc. Admiral listed on the London Stock Exchange in September 2004. Confused.com is regulated by the FSA.
About Towers Watson:
Towers Watson (NYSE, NASDAQ: TW) is a leading global professional services company that helps organisations improve performance through effective people, risk and financial management. The company offers solutions in the areas of employee benefits, talent management, rewards, and risk and capital management. Towers Watson has 14,000 associates around the world and is located on the web at www.towerswatson.com.