The average premiums for UK motorists began to slide as the nation went into lockdown, according to the latest research from data insight specialist Consumer Intelligence.
Despite an overall increase of 2.7% in the last 12 months, average premiums now stand at £876 following a 1.4% fall in the last quarter, “most likely” a result of the global pandemic.
John Blevins, pricing expert at Consumer Intelligence, said: “With fewer cars on the road and the subsequent reduction in claims, it seems some of those savings may be making their way back to customers via reduced premiums.”
The group’s latest research found that average premiums fell across all age groups in the last quarter, with premiums for under-25s down by 1%, for 25-49 year olds down by 1.4% and for over-50s down by 1.5%.
In the last year, the cost of motor insurance for the under 25s has remained “static”, however, with a net movement of 0%. Nonetheless, the age group witnessed the biggest reduction in premiums over the longer term, with a 20.3% fall since Consumer Intelligence started tracking average premiums in October 2013.
This was “largely driven” by the emergence of telematics policies, according to Consumer Intelligence. The average premium for this age group now sits at £1,912.
Blevins added: “Once again the telematics offerings are keeping premiums down for the under 25s. The proportion of the cheapest prices being offered to this age group by a telematics provider is 53%.
“This has reduced however from 63% in May 2019. This would suggest more mainstream products are offering competitive pricing for these younger drivers without the black box technology.”
The group’s latest report also found that London remains the most expensive region in the UK for car insurance, witnessing the largest rise in prices of the past 12 months (5.7%).
Despite this rise, a reduction of 0.6% was seen in the past quarter in light of the nationwide lockdown. The average premium for motorists living in the capital currently stands at £1,503.
The North West and West Midlands were the next most expensive regions at £1,059 and £952, respectively. The North West region did, however, see the second largest price reduction in the past three months, with prices down by 2.8%. The South West saw the largest reduction at 3.3%.
Blevins concluded: “Regional pricing will be dictated by claims experience and crime rates. Both of which has fallen during the current pandemic. Less people on the roads and more cars parked safely at home.”