Car Insurance Costs Down by £100 in 2014
An AA survey has revealed some good news for British motorists. It shows that the average price of a car insurance policy has dropped by a whopping £100 in just the first three months of 2014.
An AA survey has revealed some good news for British motorists. It shows that the average price of a car insurance policy has dropped by a whopping £100 in just the first three months of 2014. The average cost for a comprehensive car insurance policy is now £531. This represents a drop of 5.6% on the final three months of 2013 and, even more impressively, a cut of 16.6% when compared with the same period for last year. Interestingly, the cost of the average third party, fire and theft policy is higher, at £725, despite providing reduced cover. According to the AA, this is because such policies are disproportionately taken out by younger drivers, who usually pay more for care insurance and are less likely to be able to afford a comprehensive policy. The average figure for third party, fire and theft insurance has fallen by 8.4% in the last three months and by 18.5% in the last year.
Although still paying more, young drivers have enjoyed the largest drop in premiums in the first three months of 2014, with a reduction of around 20%. At the other end of the age scale, the over 70s fared least well, with a drop of just 7%. Those motorists in their 60s are paying least for their comprehensive insurance, with an average price of just £299.81. The AA survey also shows significant regional differences in insurance costs. The average price for a comprehensive policy in the northwest of England is highest at £779.97, with Scotland the cheapest at £382.55.
Simon Douglas, the AA’s insurance director, however, has warned that the steep downward trend seen in the first three months of 2014 may not continue, due to the continued impact of fraudulent compensation cases. He said: "Legal reforms introduced by the justice ministry to curb organised attempts at whiplash injury fraud coupled with better fraud detection by insurers have also certainly helped put downward pressure on premiums. But despite this there is no evidence that this is delivering any significant reduction in the number and value of personal injury claims."
Chris Grayling, the Justice Secretary, commented: "We are turning the tide on the compensation culture and doing our bit to help drivers with the cost of running a car. We have made major law changes which have been a significant factor in these record falls in car insurance premiums. But we want to do more, and we are now going after the fraudsters who force up the costs for everyone else."
Back to April 2014