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Car insurance price index reveals prices continue to fall

Overall decrease of 12.5% in Q4 2013

Posted on 04 Dec 2013

The latest Car Insurance Price Index, in association with Towers Watson shows that the brakes are still being applied when it comes to car insurance prices. The average cost of comprehensive car insurance for Q4 2013 stands at £644, a price drop of 12.5% year on year.

The average comprehensive car insurance price now stands at £644 as of Q4 2013, compared with £858 when prices were at an all-time high in Q2 2011. This considerable price decrease of £214 is welcome news for motorists.

For third party fire and theft cover only, average premiums for Q4 2013 stood at £1053, showing a decrease of 7.5% yr-on-yr, and a 0.4% reduction quarter on quarter.

Comprehensive Car Insurance Price Index Q4 2013 price index in association with Towers Watson

Since the EU Gender Directive, which took effect just over a year ago on December 21st 2012, insurers are no longer able to use gender as a factor when pricing insurance. This move to equalisation looks like being good news for the majority of drivers. In fact, all age groups have seen a reduction in the amount they are being quoted for car insurance over the last 12 months.

The gender divide in more depth…

It’s been more than a year since one of the biggest shake-ups in the car insurance market as the EU gender directive came into force in December 2012.

As a result, young men have been the main beneficiaries of comprehensive price reductions over 2013, with 17-20 year olds seeing their premiums fall by 23%.

However, young women, who initially suffered from the anticipation and introduction of gender neutral pricing, have also benefitted from a generally soft market in 2013. In fact, females aged between 21-25 saw the biggest yr-on-yr fall of 14%, bringing their average insurance premium down to £936.

In Q4 2013 men paid £671 on average for their comprehensive car insurance premium, a reduction of 12% compared to the same time last year. Women enjoyed a steeper drop in premiums, paying £610 on average, a 13.6% decrease over the same period.

This could be a potential effect of gender-neutral pricing being bedded-down for 12 months and also insurers becoming more selective in their pricing strategies.

Men have traditionally faced higher premiums for their car insurance, however over the last year they have seen significant prices decreases for the cost of their comprehensive car insurance. However these price decreases seem to be slowly diminishing for some men, with selective age groups seeing price rises this quarter.

Quarterly comprehensive insurance price rises for males of certain age groups 

         Male Age Groups      

 Qtr-on-Qtr % increases 















Notably, men as a group received a small increase in average premium of 0.9% in the final quarter, the first quarterly increase for two years. They are also still paying more than their female counter parts. The difference now stands at £61 (men £671 vs women £610), a price increase difference of £31 compared with prices seen in Q3 2013 (men £665 vs women £635).

The regional divide

When looking at the regional divide, the Car Insurance Price Index reveals that all areas in the UK are seeing a significant decrease yr-on-yr. The biggest yr-on-yr decreases in insurance premiums since this time last year can be seen in Central Scotland, East and North East Scotland and Manchester/Merseyside.

Top 5 regional comprehensive insurance decreases yr-on-yr 


 Yr-on-Yr  change 

1.) Central Scotland   


2.) Manchester/Merseyside


3.) East & North East Scotland


4.) North West


5.) Scottish Highlands



Continuing with falling prices drivers the postcode area of Liverpool have enjoyed the biggest yr-on-yr decease 19.6% in their comprehensive car insurance prices, bringing their insurance on average down to £942.

In contrast, regionally the most expensive comprehensive car insurance premium label falls to Inner London, where the average cost stands at £1,069 - £425 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 £750 on average.

Five most expensive regions for comprehensive car insurance


 Average cost of car insurance
Q4 2013 

1.) Inner London


2.) Manchester/Merseyside


3.) Outer London


4.) West Midlands


5.) Leeds/ Sheffield



On average car insurance premiums have fallen by 1.1% qtr-on-qtr for the UK as a whole. However, some regions are bucking the trend and experiencing price rises for males within certain areas. Men living in the region of the Scottish borders; East Midlands and Northern Ireland are experiencing considerable increases.

Top 5 regional comprehensive price increases qtr-on-qtr for males by region


 Qtr-on-Qtr change

1.) Scottish Borders


2.) East Midlands


3.) Northern Ireland


4.) South


5.) South East



However, it’s not all bad news for men up and the down the country, with 51-55 year old males in the West enjoying price decrease of 25% in the last six months alone. These males are now paying on average £433 for their comprehensive car insurance premiums.

Gemma Stanbury, Head of Car Insurance at says: “With the EU Gender Directive coming into effect at the end of 2012, it’s clear to see that the insurance industry has reacted to the change in legislation over the last year.

“Prices between men and women have evened out over the year seeing a price difference of only £61, compared to a significant price difference of £112 (males £807 compared to females £695) seen in Q3 2012.

“Comprehensive car insurance prices have fallen by 12.5% in the last year, bringing premiums to an average of £644. These falling prices are welcome news for motorists; however the latest car insurance price index highlights that price rises could be on the horizon with some males already experiencing price hikes in the last quarter.

“We would recommend that drivers shop around on comparison sites like to get the best deal. By doing so this could be a great opportunity for motorists to take advantage of these latest price drops, not just accept their renewal price.”



Notes to Editors:

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.

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

For further information:

About the Index:
The index is compiled using anonymous data from all enquiries submitted on 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 are based on an average of the best five quotes received on
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 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

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