Premiums for a comprehensive motor insurance policy fell by 1% (£12) to £762 in the first quarter of 2019, the Willis Towers Watson and Confused Car Insurance Price Index has revealed.
Confused.com Car Insurance Price Index, which is based on price data compiled from almost six million customer quotes per quarter, shows that the decline in car insurance premiums is the first slip after rising for two consecutive quarters.
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According to the data, comprehensive car insurance premiums have fallen for the first time since first half of 2018, with UK motorists now paying £762 on average, some £5 less than they were paying this time last year.
Willis Towers Watson UK P&C leader Stephen Jones said: “The fluctuation in premium levels seen across recent quarters reflects on-going uncertainty surrounding the impact of the Civil Liability Bill and the anticipated adjustment to the Ogden rate, following recent changes to the law around whiplash claims passed in December 2018 and due to come into force next year.”
Car insurance premiums decreased across the UK
The cost of comprehensive car insurance also declined across the UK.
Drivers in the City of London witnessed the highest quarterly fall of 7% (£1,333), despite being the most expensive location in the country for car insurance.
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By GlobalDataThe cheapest place for motor insurance in the UK is now Exeter where drivers were paying an average of £534 during the last three months.
Male drivers aged between 17 and 20 were affected by the greatest quarterly increase of 5% and continue to pay the most of any demographic, £2,343 on average.
Male drivers aged between 66 and 70 will benefit from the greatest price fall, as they are witnessing a 5% price cut in their annual premiums to £481.
Meanwhile, female drivers across all ages experienced a decline in prices, except for those aged between 17 and 20, with premiums increasing slightly by 1% to £1,660.
Jones added: “The first quarter of any year has often seen below-trend price movements as insurers have sought early volume momentum or a share of the key March new registration plate business “spike”.
“Further price fluctuations could yet materialise in 2019, as Civil Liability Bill and Ogden effects overlay upon inflationary trends evident in the costs of crash repairs, owing to vehicles being more technologically advanced and reductions in the repair shop capacity able to handle the more advanced repair processes necessary.”
