Motorists will be pleased to read that car insurance premiums have fallen for yet another quarter according to the Confused.com Car Insurance Price Index. In the last quarter of 2024 premiums averaged £834 per annum with this being a drop of £27 per annum equating to 3% when compared to the previous quarter.
With many people here in the UK still struggling financially, this will no doubt come as welcome news. Let us hope that this pattern continues in 2025 and beyond.
It is also interesting to note that average car insurance premiums are £161 per annum less than a year ago. This equates to a reduction of 16%. We are sure that our readers will agree that is a large drop.
However, it is rather concerning that, of those motorists who received an annual renewal notice in the 4th quarter of 2024, 57% stated their premiums had risen by an average of £78 per annum.
When motor insurance companies work out how much to charge drivers for such cover they take into account so many factors. For instance, what is the make and model of vehicle, where does the motorist live, how old is the driver, how many miles per annum will the vehicle be driven in a year, what level of cover is required i.e. fully comprehensive, third party or third party fire and theft.
As a general rule, it is the young inexperienced driver who tends to be charged more for car insurance than the more mature driver. For instance, in the 4th quarter of 2024, it was 18 year olds who, on average paid more for car insurance with premiums averaging £2,605 per annum. However, that is a fall of £557 per annum compared to 12 months ago. A 17 year old was charged an average of £2,404 per annum with this being £473 per annum lower than a year ago. A 23 year old paid an average of £1,566 per annum whilst a 45 year old an average of £799 per annum.
The most expensive region in the UK for car insurance in the last quarter of 2024 was Inner London with premiums averaging £1,308 per annum. This is a drop of £299 per annum compared to a year ago. Motorists in the South West, on average, paid the lowest premium of £558 per annum with this being 378 per annum lower than a year ago.
So, when you receive your renewal notice or you are looking to insure your first car do make sure that you shop around. In that respect, why not give us a call to get a competitive quote as we provide access to an extensive panel of car insurers.
