Car insurance prices fall by 11%

By Charlotte Whyatt - Mon 30th Jul 2018
Car insurance prices fall by 11%

The average price of car insurance in the UK has fallen by 11% over the past year, according to the latest price index for comparison website

Significant savings have been made by motorists featured across all of the index's categories including geographical region and age.

Those in inner London for example, were paying around £1,339 for an insurance policy this time last year, a figure which has now dropped to £1,160. Similarly, inhabitants of Manchester and Merseyside have seen prices go from £1,101 to just £969 over the same period.

Northern Ireland however, is the region that's seen the largest overall drop in price with premiums there having fallen a staggering 16%, making prices around £165 cheaper than they were previously.

In term of age groups, it's quite surprisingly younger drivers who've seen the biggest fall in car insurance prices.

On average, a 17-year old will now pay £1,889 for a policy instead of the £2,292 they were paying before while for a 19-year-old the cost has gone from £2,152 to £1,893. 

The reason for such a dramatic decrease in price is mainly due to the changes which have been made to the Ogden rate, the method that's used to determine how much your insurance provider needs to pay out in the event of a personal injury claim. 

Back in March 2019, the government decided to reduce the Ogden rate which resulted in a huge spike in the cost of car insurance. Some months later, now that everything's begun to settle down, that price rise has suddenly transformed into price drop. 

Source: Which