The cost of the average motor insurance premium in the UK has fallen to its lowest level in two years and now stands at £466, according to the latest Motor Insurance Premium Tracker.
Compiled by the Association of British Insurers, the Tracker is claimed to be the only survey that looks at the price consumers actually pay for their cover, rather than at prices quoted.
Key findings from the most recent survey include:
Why has the cost of the premium fallen?One of the main reasons is that insurers have been passing on cost savings that they expect to make from reforms of the Civil Liability Act, which will deliver a fairer compensation system for claimants.
“The falling cost of motor insurance is great news for motorists after several years of rising premiums, which largely reflected the UK’s costly personal injury compensation system,” Mark Shepherd, the ABI’s Assistant Director, Head of General Insurance Policy, said. “As the industry promised, motorists are now beginning to see the benefits of the personal injury reforms recently enacted.
“However, some cost pressures remain, with rising repair costs, and the Government needing to resist any temptation to further increase Insurance Premium Tax.So motorists should continue to make the most from a competitive market by shopping around for the best deal for their needs.”