Car insurance prices in the United Kingdom available through price comparison sites, and particularly those for younger drivers, dropped dramatically in the third quarter of 2012, according to Towers Watson.
Drivers aged between 17 and 20 saw the sharpest cuts of any drivers: Prices for females in that age group fell by 9.1 percent and male’s prices fell by 7.8 percent. Comprehensive rates for all 17-20 year olds have fallen by 13.6 percent in the past year, with females in this age group having seen average decreases of 17.3 percent.
The downward price movements overall were the biggest seen in any quarter since the launch of the Confused.com/Towers Watson Car Insurance Price Index in 2007. Comprehensive cover premiums across the UK fell by an average of 5.1 percent between July and September, meaning that rates have dipped by a typical 10.3 percent in the last 12 months.
The average comprehensive premium in the UK stood at £757 ($1209) as of the end of September, a drop of £87 ($139) in the last year.
Annual price movements for third-party, fire and theft cover also became negative for the first time since 2007, falling by an average 2.1 percent, or £24 ($38) over the last 12 months.
Duncan Anderson added: “Price decreases of this order signify jostling for position amongst insurers ahead of the implementation of the European Court of Justice ban on the use of gender in pricing from 21 December. Having won more younger driver business, they will seek to retain profitable segments by substituting other factors for gender and minimizing the impact of the future price rises that are reasonably anticipated to affect many women in 2013.”
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