Comprehensive car insurance premiums have fallen by 5% (£39) in the second quarter of 2020, according to the latest Confused.com Car Insurance Price Index in association with Willis Towers Watson.
The average cost of car insurance is now £770, following a £19 (2%) decrease over the past year, according to the longest established and most comprehensive car insurance price index in the UK, which is based on price data compiled from almost six million customer quotes per quarter.
The in-depth research looked beyond price to both changes in the mix of types of people quoting – for example less young driver quotes were conducted because fewer newly qualified young drivers were coming onto the roads – and to changes in the type of quote that customers were requesting.
The analysis noted that, for example, customers who might typically be 10,000 mile-per-year drivers were now seeking quotes at lower mileage levels.
The research also investigated changes in the mix of insurers quoting and, with some providers ceasing to quote for different periods, this further affected the composition of insurers making up the top five average price.
According to Willis Towers Watson, all of this reveals that whilst insurers took pricing action over the quarter, not all of the surface level changes in market price are necessarily exactly as they seem.
Graham Wright, UK lead of P&C personal lines pricing at Willis Towers Watson, said: “The sudden drop in traffic during lockdown and fall in accidents and claims inevitably put temporary downward pressure on the cost of premiums.
“However, a forensic analysis of the complex changes in customer quoting patterns in the last quarter reveals the impact of the pandemic on market dynamics was about more than just price.”