Car Insurance Premiums Fell Spring - Summer 2012, But Will This Decrease Continue?
CHESTER, England, November 13, 2012 /PRNewswire/ --
- Average car insurance premiums have decreased by 6.4 per cent over the summer to £456 according to The MoneySupermarket Monitor*
- Scots benefit from the average cheapest premiums
- New gender rules could reverse the downward trend, warns MoneySupermarket
The latest MoneySupermarket Monitor on Car Insurance shows the downward trend in car insurance pricing continued over the summer of 2012, with average annual premiums now standing at £456, a fall of 6.4 per cent.
The full analysis of more than 18 million quotes* tracks the average car insurance prices of customers using the UK's number one comparison site. The Monitor found car insurance prices have fallen 10.9 per cent since September last year, saving the average motorist £56 on their annual premium.
However, despite the overall fall in car insurance premiums year on year and Quarters 2 to 3, a more detailed breakdown of the data month by month indicates a slight increase in the average cost of car insurance premiums between August and September of 1.6 per cent - an extra £7 to the cost of an average policy.
Our historical data shows a similar 'bump' in the late summer of 2011. There was also an increase in Quarter 4 2011, which could indicate that increases are in the pipeline for Quarter 4 2012.
Female motorists continued to benefit most from the overall fall in the cost of cover in recent months, as the average price for women drivers decreased by 7.5 per cent compared to a 5.4 per cent drop for male motorists.
Over the summer months, the price gap between the average cost of cover for male and female motorists stood at £115, meaning men are paying 29.1 per cent more. This is 2.8 percentage points higher than the gap recorded between the genders in the spring 2012 data, showing that, despite the imminent implementation of the ECJ ruling outlawing gender discrimination in insurance pricing, the gap between male and female car insurance premiums has actually increased in the three months to the end of September.
Kevin Pratt, insurance spokesperson at MoneySupermarket.com, said: "Overall things still look good for motorists who long for cheaper car insurance premiums as the cost of cover was lower in the summer than it was in spring, and significantly lower than the same time last year. However, we have seen a slight increase between August and September which may indicate the trend is not set to last.
"Insurers are slowly releasing information on their plans for the implementation of the ECJ ruling, so we continue to expect uncertainty over the cost of car cover for the final quarter of this year."
The Monitor found all regions in the UK continued to benefit from a reduction in the cost of premiums over the last quarter. The average cost of cover continues to vary considerably across the country with London topping the chart for the most expensive car insurance premiums, averaging £704 per year. Overall, motorists in Scotland have the cheapest annual car insurance, averaging £303 in North Scotland and £291 in South Scotland.
Kevin Pratt continued: "As we saw in the last MoneySupermarket Monitor on Car Insurance the cost of annual cover varies considerably across the country. Londoners continue to suffer from the highest premiums while those in Scotland are benefitting from average premiums around £400 lower. Despite the title of the UK's cheapest car insurance going to those drivers in Scotland, when looking at who has had the lowest levels of deflation year on year, Scottish postcodes fill the table. This may mean premiums might not continue to fall in those areas as the rate of reduction slows compared to other areas of the country.
"The fall in the cost of cover across the UK is partly due to intense price competition in the market. This is excellent news for motorists who are prepared to shop around to ensure they get the best deal. The typical saving made by those using MoneySupermarket to take out their car insurance is £409**. Other factors that account for deflation include insurers making improvements to fraud detection, cutting the amounts paid out on false claims dramatically, and, new cars are more secure than they have ever been, with alarms and immobilisers fitted as standard. It is also easier to track stolen cars via satellite, therefore improving the likelihood of recovery."
Notes to editors:
* MoneySupermarket Monitor on car insurance:
18,378,495 quotes run on the MoneySupermarket website between July 2011 and September 2012.
Average Movement Last Movement Area Price GBP Quarter % Last Year % GREATER LONDON GBP 704 -5.9% -7.8% NORTH WEST ENGLAND GBP 547 -7.7% -13.6% WEST MIDLANDS GBP 487 -5.7% -10.2% YORKSHIRE GBP 475 -6.5% -14.3% NORTH EAST ENGLAND GBP 436 -6.8% -12.4% EAST ANGLIA GBP 435 -5.9% -9.1% NORTHERN IRELAND GBP 433 -5.5% -10.7% SOUTH WALES GBP 425 -6.9% -11.5% EAST MIDLANDS GBP 418 -6.1% -10.1% SOUTH EAST GBP 401 -6.8% -9.0% NORTH WALES GBP 343 -6.7% -9.9% MID SCOTLAND GBP 341 -6.2% -10.4% MID WALES GBP 339 -7.8% -7.9% SOUTH WEST GBP 320 -7.4% -9.2% NORTH SCOTLAND GBP 303 -4.1% -5.0% SOUTH SCOTLAND GBP 291 -5.7% -9.2%
** Based on online independent research by Consumer Intelligence during 01 September 2012 to 30 September 2012
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