Quoted car insurance premiums in the UK fell by 1.1% over the past year, marking the first decrease in nearly three years, according to the Consumer Intelligence Car Insurance Price Index. However, younger drivers under the age of 25 saw premiums rise sharply by 12.2% during the same period, highlighting a significant age-related disparity.
The decline in premiums represents a reversal from consistent increases since January 2022. While the average driver is seeing relief, younger motorists continue to grapple with rising costs. Consumer Intelligence data shows that 57% of drivers received a quoted premium below £750 in October, an improvement from 50% in 2022.
Drivers aged 25 to 49 experienced a modest 0.5% decrease in premiums over the past year, while those over 50 benefited most, with a 9.1% reduction. Despite these shifts, age remains a critical factor in premium disparities. Only 21% of drivers under 25 secured a quote below £750, compared to 78% of over-50s.
Premium trends also varied by region. Wales saw the largest decline in quoted premiums over the past year, dropping by 9.1%. In contrast, Scotland recorded a 3.9% increase during the same period, making it the only region with a sustained rise. Over the past three months, Wales again led in reductions, with premiums falling by 5.3%, while Scotland saw a 1.5% increase.
|
Region |
Price Index past 12 months (October 23 to August 24) |
Price Index past 3 months (July 24 to October 24) |
|---|---|---|
|
Scotland |
+3.9% |
+1.5% |
|
London |
+2.9% |
-1.5% |
|
South West |
+2.3% |
-1.6% |
|
Eastern |
-0.3% |
-1.8% |
|
North East |
-0.3% |
-2.6% |
|
South East |
-1.3% |
-2.8% |
|
North West |
-1.7% |
-2.8% |
|
East Midlands |
-2.1% |
-1.3% |
|
West Midlands |
-2.2% |
-3.2% |
|
Yorkshire & The Humber |
-6.1% |
-1.4% |
|
Wales |
-9.1% |
-5.3% |
Source: Consumer Intelligence
Max Thompson, insurance insight manager at Consumer Intelligence, highlighted the unusual trend in Scotland. “Scotland saw an increase in competitive premiums despite the announcement that the Personal Injury Discount Rate would move from -0.75% to +0.5% which should lower the cost of large injury claims and, in turn, premiums,” said Thompson. “A review into the rate is underway in England and Wales and should be completed in January at the latest.”
Since 2013, average quoted car insurance premiums have surged by 117%. Drivers over 50 have faced the largest increases, with rates up 145.5%, while those under 25 have seen a comparatively smaller rise of 44.8%.
The role of telematics in determining premiums appears to be diminishing, especially for younger drivers. In October, only 35% of quotes for drivers under 25 were provided by telematics providers, down from 39% in July. Meanwhile, telematics quotes for those aged 25 to 49 and over 50 remained largely stable, with a slight uptick among older drivers.
Do you have something to say about this story? Share your thoughts in the comments below.
