Car Insurance Premiums Fell Spring - Summer 2012, But Will This
Decrease Continue?
CHESTER, England, November 13, 2012 /PRNewswire/ --
- Average car insurance premiums have decreased by 6.4 per
cent over the summer to £456 according to The MoneySupermarket
Monitor*
- Scots benefit from the average cheapest premiums
- New gender rules could reverse the downward trend, warns
MoneySupermarket
The latest MoneySupermarket Monitor on Car Insurance
shows the downward trend in car insurance pricing continued over
the summer of 2012, with average annual premiums now standing at
£456, a fall of 6.4 per cent.
The full analysis of more than 18 million quotes* tracks
the average car insurance prices of customers using the UK's number
one comparison site. The Monitor found car insurance prices have
fallen 10.9 per cent since September last year, saving the average
motorist £56 on their annual premium.
However, despite the overall fall in car insurance premiums year
on year and Quarters 2 to 3, a more detailed breakdown of the data
month by month indicates a slight increase in the average cost of
car insurance premiums between August and September of 1.6 per cent
- an extra £7 to the cost of an average policy.
Our historical data shows a similar 'bump' in the late summer of
2011. There was also an increase in Quarter 4 2011, which could
indicate that increases are in the pipeline for Quarter 4 2012.
Female motorists continued to benefit most from the overall fall
in the cost of cover in recent months, as the average price for
women drivers decreased by 7.5 per cent compared to a 5.4 per cent
drop for male motorists.
Over the summer months, the price gap between the average cost
of cover for male and female motorists stood at £115, meaning men
are paying 29.1 per cent more. This is 2.8 percentage points higher
than the gap recorded between the genders in the spring 2012 data,
showing that, despite the imminent implementation of the ECJ ruling
outlawing gender discrimination in insurance pricing, the gap
between male and female car insurance premiums has actually
increased in the three months to the end of September.
Kevin Pratt, insurance
spokesperson at MoneySupermarket.com, said:
"Overall things still look good for motorists who long for cheaper
car insurance premiums as the cost of cover was lower in the summer
than it was in spring, and significantly lower than the same time
last year. However, we have seen a slight increase between August
and September which may indicate the trend is not set to last.
"Insurers are slowly releasing information on their plans for
the implementation of the ECJ ruling, so we continue to expect
uncertainty over the cost of car cover for the final quarter of
this year."
The Monitor found all regions in the UK continued to benefit
from a reduction in the cost of premiums over the last quarter. The
average cost of cover continues to vary considerably across the
country with London topping the
chart for the most expensive car insurance premiums, averaging £704
per year. Overall, motorists in Scotland have the cheapest annual car
insurance, averaging £303 in North
Scotland and £291 in South
Scotland.
Kevin Pratt continued: "As
we saw in the last MoneySupermarket Monitor on Car Insurance
the cost of annual cover varies considerably across the country.
Londoners continue to suffer from the highest premiums while those
in Scotland are benefitting from
average premiums around £400 lower. Despite the title of the UK's
cheapest car insurance going to those drivers in Scotland, when looking at who has had the
lowest levels of deflation year on year, Scottish postcodes fill
the table. This may mean premiums might not continue to fall
in those areas as the rate of reduction slows compared to other
areas of the country.
"The fall in the cost of cover across the UK is partly due to
intense price competition in the market. This is excellent news for
motorists who are prepared to shop around to ensure they get the
best deal. The typical saving made by those using MoneySupermarket
to take out their car insurance is £409**. Other factors that
account for deflation include insurers making improvements to fraud
detection, cutting the amounts paid out on false claims
dramatically, and, new cars are more secure than they have ever
been, with alarms and immobilisers fitted as standard. It is also
easier to track stolen cars via satellite, therefore improving the
likelihood of recovery."
Notes to editors:
* MoneySupermarket Monitor on car insurance:
http://www.moneysupermarket.com/car-insurance/monitor/
18,378,495 quotes run on the MoneySupermarket website between
July 2011 and September 2012.
Average Movement Last Movement
Area Price GBP Quarter % Last Year %
GREATER LONDON GBP 704 -5.9% -7.8%
NORTH WEST ENGLAND GBP 547 -7.7% -13.6%
WEST MIDLANDS GBP 487 -5.7% -10.2%
YORKSHIRE GBP 475 -6.5% -14.3%
NORTH EAST ENGLAND GBP 436 -6.8% -12.4%
EAST ANGLIA GBP 435 -5.9% -9.1%
NORTHERN IRELAND GBP 433 -5.5% -10.7%
SOUTH WALES GBP 425 -6.9% -11.5%
EAST MIDLANDS GBP 418 -6.1% -10.1%
SOUTH EAST GBP 401 -6.8% -9.0%
NORTH WALES GBP 343 -6.7% -9.9%
MID SCOTLAND GBP 341 -6.2% -10.4%
MID WALES GBP 339 -7.8% -7.9%
SOUTH WEST GBP 320 -7.4% -9.2%
NORTH SCOTLAND GBP 303 -4.1% -5.0%
SOUTH SCOTLAND GBP 291 -5.7% -9.2%
** Based on online independent research by Consumer Intelligence
during 01 September 2012 to
30 September 2012
MoneySupermarket.com compares (at
30th Oct
2012)
- 129 car insurance brands and 100 home insurance
brands
- 10 broadband providers and 18 energy
providers
- 30 unsecured loan and 5 secured loan providers
- 62 mortgage lenders and 29 credit card providers
- 66 savings providers and 37 current account
providers.
- Over 950,000 mobile phone deals
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For further information, please contact:
Nicki Parry
PR Officer
+44(0)1244-370318
nicki.parry@moneysupermarket.com