- Common quoted premiums drop by 6.0% in previous three months – the largest fall on document – and by 8.8% prior to now 12 months
- In January, motorists mostly acquired a quote between £250 and £499, Shopper Intelligence knowledge exhibits.
Falls in quoted automotive insurance coverage premiums are accelerating dropping a document 6.0% prior to now three months and by 8.8% prior to now 12 months, based on the newest Shopper Intelligence Automotive Insurance coverage Worth Index¹.
The autumn in quoted premiums prior to now three months is the largest since Shopper Intelligence first began monitoring in October 2013. Unde-25s noticed quoted premiums fall by 8.1% since October final 12 months however by simply 0.1% prior to now 12 months.
Drivers in Wales noticed the largest fall prior to now 12 months at 18.5% and the steepest lower prior to now three months at 8.4%. Yorkshire & The Humber, West Midlands and Jap area additionally skilled double digit falls prior to now 12 months.
Drivers mostly acquired a quote between £250 and £499 with 25% of quotes falling on this vary and 22% between £500 and £750. Information exhibits 62% of drivers may acquire a quote for lower than £750 in January this 12 months from value comparability web sites in contrast with 49% final 12 months
“The variety of manufacturers promoting value minimize gives on value comparability web sites has hit a brand new excessive. Partially it’s as a result of variety of tiered merchandise however it nonetheless exhibits the extent of value competitors,” says Max Thompson, Insurance coverage Perception Supervisor at Shopper Intelligence.
“The brand new Ogden charge of +0.5% which got here into impact on January eleventh has probably benefited youthful drivers most because it means settlements for claims with long-term damages are decreased. Nonetheless fewer manufacturers seem on the prime of outcomes for youthful drivers which may imply the market is extra reliant on fewer companies ,” provides Thompson.
Lengthy-term view
Common quoted premiums have risen by 103.9% – barely greater than doubled – since October 2013 when Shopper Intelligence started gathering knowledge.
The over-50s have seen the biggest improve, with premiums rising by 132.0%, whereas the under-25s have skilled the smallest rise at 33.0%. Drivers aged between 25 and 49 have seen common quoted premiums improve by 124.1%.
Age variations prior to now 12 months
The under-25s noticed the largest drop in quoted premiums over the previous three months at 8.1% in contrast with 5.7% for these aged 25 to 49 and 5.5% for the over-50s. Over the previous 12 months nevertheless falls in quoted premiums for the under-25s have been a marginal 0.1% and manner behind the 8.0% drop for these aged 25 to 49 and 14.3% for the over-50s.
Telematics
The proportion of the rank one to 5 quotes which might be from telematics suppliers rose to 17% in January from 13% in October.
All age teams benefited with 38% of the rank one to 5 quotes for under-25s offered by telematics suppliers in contrast with 35% in October. The proportion of rank to 5 quotes from
telematics for these aged between 25 and 49 rose to fifteen% from 12% and to 9% from 7% for the over-50s.
Regional variations
All areas noticed falls in common quoted premiums over the previous 12 months with the largest drop in Wales at 18.5% and the smallest in Scotland at 3.7%. An extra three areas noticed double digit drops together with Yorkshire & The Humber (13.2%), West Midlands (12.0%) and Jap area (10.4%).
Wales additionally recorded the largest drop over the previous three months at 8.4% adopted by Yorkshire & The Humber and Jap area at 8.0%. The smallest fall within the three months was within the North West at 3.6%
Area |
Worth Index previous 12 months (January 24 to January 25) |
Worth Index previous 3 months (October 24 to January 25) |
| Scotland | -3.7% | -4.7% |
| London | -4.5% | -5.2% |
| North West | -6.5% | -3.6% |
| South West | -6.7% | -6.0% |
| East Midlands | -7.2% | -4.5% |
| South East | -8.3% | -5.1% |
| North East | -9.5% | -7.2% |
| Jap | -10.4% | -8.0% |
| West Midlands | -12.0% | -7.7% |
| Yorkshire & The Humber | -13.2% | -8.0% |
| Wales | -18.5% | -8.4% |
1. For every threat, frequent to consecutive months, the variation is calculated from the common of the 5 least expensive premiums returned on every PCW within the earlier month to the common of the Prime 5 within the present month no matter which manufacturers offered these quotes. The train is repeated on every PCW for every frequent threat. The Total Market Prime 5 month-to-month variation is calculated by averaging throughout all these threat degree Prime 5 variations for frequent dangers run in each months. The month-to-month figures are concatenated as much as produce the trended value index from a place to begin of 100% within the base month.
