New figures compiled by Willis Towers Watson show that car insurance prices have gone down for the first time in 3 years.
The average cost of car insurance across the country is now £768, which is £13 less than the start of last year, equating to a decrease of 2%. Car insurance prices have been steadily on the increase each year since 2015, going from £600 three years ago, up to £781 at the start of last year. The latest figures provide optimism for drivers hoping to see an end to their rising insurance bills.
Drivers in central London are seeing the biggest decrease in the country; car insurance prices have decreased by £81 in the capital, which is 6% less than last year. There is also good news for young drivers, as prices for 17-year-olds are £118 less than last year. Predictably, younger drivers still face the highest insurance prices in the country; 17 and 18-year-olds can still expect their yearly insurance bill to top £2,000.
Although average prices have dropped, some motorists are still seeing an increase in their annual prices, depending on how old they are and where they live. Prices in Scotland have increased by 6% since last year, and some areas of Wales have seen a 2% increase. As well as this, both 21-year-olds and 68-year-olds have seen a sharp increase in their insurance prices, with their premiums going up by £38 (+2%) and £40 (+8%) respectively, although 68-year-olds are still paying far less than the national average.
The reason for the decrease in prices is being attributed to the Government’s announcement that they are going to review the Ogden Rate discount in April, next year. This review could result in insurers paying out less whenever a claim is made by a driver.
Despite the overall drop in insurance prices, some people are still receiving increased insurance bills when they come to renew their policy. To make sure you are getting the best deal available, now is a great time to compare the alternative insurance policies that are available from different providers. Check to see if you can get a better deal with Cuuver.com, to take advantage of the decreasing prices across the country.