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Car insurance prices dip by 7.1% year-on-year:

Confused.com/ Towers Watson report reveals drop of £60 in 12 months

Confused.com/Towers Watson car insurance price index  shows prices are being driven down by competitive insurers across the UK:

  • Year-on-year average comprehensive car insurance prices plummet by 7.1%
  • Quarter-on-quarter average prices drop by 2.3%
  • 21 year-old drivers see a 10.5% fall in average prices

After several years of soaring increases, the brakes have been applied to car insurance prices. The average cost of comprehensive car insurance for Q2 2012 stands at £797, a price drop of 7.1% year on year, compared with £858 which was the average cost for Q2 2011.  However, despite the drops and impending gender directive implementation, men are still paying on average £110 more than women on their car insurance.

Graph showing car insurance trends from 2007 to July 2012

Despite prices plummeting, 17-20 year old drivers in the UK are still being quoted average comprehensive car insurance premiums of £2,491. Postcodes are a significant factor in car insurance pricing with 17-20 year-old male drivers in Manchester/Merseyside finding they are quoted significantly more than their counterparts in Central Scotland. The average price for 17-20 year old male drivers in Manchester/Merseyside is £5,394, while in the Central Scotland region male drivers aged 17-20 are quoted a more modest £2,999. Young male drivers aged 20 or younger in Inner London can expect to pay an average of £5,330 per year.

Regionally, the West of England has seen the biggest fall in prices, as average premiums for comprehensive cover dropped by 10.5% year-on-year. 21-year-olds saw the largest year-on-year reduction in prices, experiencing a 10.5% drop. This compares with a 1.9% increase in Q2 of 2011 and a drop of 4.6% quarter-on-quarter.

Average cost of comprehensive car insurance by age, June 2012

Age

Average price of comprehensive car insurance Q2 2012

% Change quarter-on-quarter

% Change year-on-year

17-20

£2,491

-0.3

-7.4

21-25

£1,354

-4.0

-7.9

 26-30

 £892

 -2.5

 -5.9

 31-35

 £663

 -2.4

 -8.4

 36-40

 £583

 -2.3

 -8.2

 41-45

 £659

 -2.2

 -7.0

 46-50

 £715

 -2.3

 -6.4

 51-55

 £664

 -2.4

 -5.7

 56-60

 £524

 -1.7

 -5.5

 61-65

 £440

 -1.3

 -5.2

 66-70

 £435

 -1.1

 -5.1

 71 plus

 £426

 -2.3

 -8.8

 Total

 £797

 -2.3

 -7.1

 

Over the past 12 months, car insurance price cuts have been greater for 17-20 year old women than men of the same age. With the looming EU gender directive which takes effect this December, shifts in gender pricing are beginning to show through. For example, for women aged 17-20, comprehensive car insurance prices increased by 0.5% over the second quarter this year, but for men of the same age group car insurance prices have fallen by 1.1%.

Despite this welcome respite for male drivers, men are still paying an average of £110 more per year than their female counterparts.  For younger drivers, women aged 17-20 are quoted £1,878 on average, while men of the same age suffer average insurance quotes of £3,596. While this could be in part connected to the types of cars the drivers choose to drive, it is also in part due to gender, which will no longer be an influential factor by 2013.

Gareth Kloet, Head of Car Insurance at Confused.com said:
“Competition between car insurance providers is currently very high, which means it’s a great time to get a deal on your car insurance. At Confused.com we have more than 130 insurers competing for customers and so drivers can benefit from this competitive market by shopping around. When it comes to men versus women, any gender differences have to be factored out of quotations after December this year and so other factors such as the type of car you drive and the distances you expect to cover will become more important in the quote process. We anticipate that drivers will continue to reduce their annual mileage as a result of high motoring costs and seek cheaper vehicles in their search for more affordable cover.”

More than 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. Unless otherwise stated all prices referred to are for comprehensive cover.

-ENDS-

Notes to Editors

The following web pages will be updated to reflect the new figures and can be linked to:

http://www.confused.com/car-insurance/price-index
http://www.confused.com/news-views/infographics/car-insurance-interactive-5

Media information:

Confused.com press office: 
Email Helen.beckett@confused.com or phone 07551 005 877
Email Sarah.wenham@confused.com or phone 02920 434275 or 07788310289

About Confused.com:

Confused.com was the UK's first price comparison site for car insurance. Confused.com is one of the UK’s biggest and most popular price comparison services. Launched in 2002, it generates over one 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 is not a supplier, insurance company or broker. It provides an 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.


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