Quotes for comprehensive car insurance have dropped by 9.8 per cent since July 2012 according to a new report. The average comprehensive quote is £594.86 compared to £659.53 last year. Third party fire and theft quotes have also fallen – by 4.8 per cent – averaging £820.58 for a year’s cover.
Comprehensive quotes fell by 3 per cent from April to July, and third party quotes fell by 2.2 per cent over the same period.
In all age groups, a fall of at least 3.9 per cent was recorded, although the biggest fall was enjoyed by the 60-69 age group, for whom an average annual quote is now £342.73. Those aged 17 to 22, however, still pay a large sum for their cover, averaging £1,210 per year.
Why are premiums falling?
Fraudulent whiplash claims cost insurers a huge sum, amounting to £610 million over 2012 according to the Association of British Insurers. Honest customers are thought to be paying £50 a year extra just to cover these fraudulent claims.
But in-roads have been made into detecting fraudulent claims, one of the reasons experts say premiums have dropped. Another cause for the fall could be increased competition in the sector.
Recent action against rogue ‘no win no fee’ claims companies has also had a positive effect on premiums. Soon the UK may lose its reputation as the “whiplash claim capital of Europe.”
Many of our annual breakdown cover customers will no doubt be delighted by the news, which will be a modest off-set against rising petrol prices.
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