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Motorists welcome fall in car insurance premiums

Motorists welcome fall in car insurance premiums

Category: Car insurance

Updated: 29/07/2013
First Published: 29/07/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Annual car insurance premiums have experienced their biggest ever fall, bringing good news to the nation's motorists.

According to the AA's Insurance Premium Index, drivers paid an average 3% less over the past three months, with premiums falling by 9.8% over the past twelve months. A typical annual premium stands at £594.86, the lowest price since January 2011.

The drop in car insurance costs has mainly been driven by an industry-wide crackdown on the so-called compensation culture, where levels of whiplash injury claims and those of a fraudulent nature grew to significant levels.

Millions of motorists were found to have claimed for alleged whiplash injuries in the hope of a compensation payout, despite many not actually sustaining any such injury.

Since 2011, however, the percentage of such claims has begun to fall, whilst competition between insurers has, in turn, increased, reflecting in lower insurance premiums.

The figures will please motorists across the UK, particularly young drivers, who have struggled to achieve a competitive price on insurance premiums, whilst fuel prices and general running costs remain frustratingly high.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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