“Telematics policy uptake has historically been higher among young drivers in an effort to help them get on the road more cheaply, but even this age group is now using technology more – with 62% of five quotes cheapest telematics now – based for those under 25, ”said Harriet Devonald, insurance pricing expert at Consumer Intelligence. “This is an increase of almost 10% since the start of the pandemic. “
Consumer Intelligence’s latest auto insurance price index showed the average cost of auto insurance is now 11.4% lower than pre-COVID levels, with a 9.4% reduction in premiums in over the past 12 months. The average UK car premium is now £ 751.
The decrease in distance traveled due to the pandemic has resulted in a huge reduction in road accidents and claims. However, with traffic returning to normal, the decline in auto premium prices has started to stabilize, with premiums only falling by 0.9% in the past three months.
Auto insurance premiums have fallen across all age groups of drivers over the past 12 months. Those under 25 recorded the largest annual decline with -10.5%, followed by motorists aged 25-49 (-9.6%) and those over 50 (-8.2%).
While younger motorists have seen the biggest drop, insurance costs remain high for the cohort, at £ 1,589 for a typical annual policy, Consumer Intelligence said. This contrasts with £ 568 for a driver aged 25-49 and £ 353 for those over 50.
“Even with telematics policies working hard to keep prices affordable, there is still a huge difference between our age groups,” said Devonald.
Five regions in the UK have seen double-digit premium cuts in the past 12 months. The North East (-13.2%) experienced the largest decline, followed by the North West (-10.7%) and London (-10.4%). All regions of the UK recorded significant declines over the 12-month period, with the South East (-7.3%) recording the smallest drop.
Car insurance was the most expensive in London, averaging £ 1,265, followed by North West at £ 984. Bonuses were cheapest in the South West, at £ 529 on average.