Revealed – What Occurs To UK Automotive Insurance Prices – Insurance Enterprise
"However, with more cars likely to return to the streets if the lockdown rules are further relaxed from July 19, there is a risk that the increase in kilometers driven will push premiums in the opposite direction to pre-pandemic prices."
The index, which is based on price data from almost six million customer offers per quarter, shows that the premiums are now at their lowest level since the beginning of 2016. Compared to the second quarter of 2020, the current average not only means a decrease of 12% compared to the previous year, but also the second largest annual decrease since 2014.
Louise O’Shea, CEO of Confused.com, said, “The turbulence of the past 18 months has been a key factor in how driving behavior has changed, which is now reflected in the cost of auto insurance. How long that will take will be difficult to say. As the restrictions are relaxed, the number of motorists on the road is likely to increase, which will undoubtedly be reflected in insurance premiums.
"Between the upcoming FCA (Financial Conduct Authority) changes that will create a period of uncertainty in the industry, and skyrocketing fuel prices, among other car costs, it has never been more common for drivers to look around."
On a quarterly basis, it was found that the cost of comprehensive motor vehicle insurance has now fallen for the third quarter in a row. Premiums decreased in all UK regions from April to June except Northern Ireland, where prices rose 1%.
Meanwhile, West Central London is still the UK's most expensive place to get car insurance, with policies averaging £ 981; The cheapest is the Welsh town of Llandrindod Wells, where drivers spend around £ 319 to get full coverage.
"Even without the pandemic," Wright added, "the regulatory reforms that are taking hold across the sector, including the FCA's ban on general insurance price hikes and the Justice Department's whiplash reforms, are putting pressure on rising and falling prices.
"With so many simultaneous challenges, the Personal Lines industry is poised for one of the most tumultuous times in its history."