In the past several months, car insurance premiums went down to an astonishing 15%, and are at their lowest, according to the data available of the past five years. According to a research conducted on price comparison by Confused.com, the average quoted premium has gone down to a third from the year 2011. Now the insurance companies are quoting £579 instead of £678, which they charged a year ago.
This step was a major EU directive for encouraging youth of both genders to opt for car insurances as the fallen premiums are now under the affordability range of an average person. Females of age group 17-20 are the biggest winners, who continually enjoyed a striking 33% year-after-year fall in car insurance premiums, even though the EU gender directive was introduced. This directive was enforced at the beginning of the year and stopped the insurance agents from gender discrimination.
When these rules were presented, most analysts predicted that females would fall out and won’t take benefit of this opportunity, but both genders have observed the constant decrease in prices and made the most out of it.
Cities like Merseyside and Manchester, where premiums for car insurance is very high, are now going through some of the biggest falls they experienced in the past five years. The prices went down to 19%, and become £808 on average after the decrease of £184, which is quite low recuperate on the premiums end. Nevertheless, these regions are still the most expensive outside inner London in the UK.
The figures presented in the research by AA are synonymous to what we are seeing now, which indicated that the premium prices will be down by £105 over the past year. They explained that due the competitive pressure, the premiums are being kept down, rather than restructured to curb car accident injury claims which had minor effect on the number of false injury claims made.
But recently, an insurance partner at Deloitte, James Rakow, predicted that car insurance premiums are likely to rise again soon, in over a period of next 12 months. The reason behind the reversing of the prices he gave was the car insurers made modest profits last year. They paid £90 in expenses and claims for every £100 of the policy premiums in 2013 and came with a staggeringly great figure.