Motorists around the UK are enjoying lower car insurance rates than ever before in recent history as anti-fraud investigations lower the number of claims. Compared to prices recorded in April 2013, the cost of comprehensive auto insurance has fallen three percent. Third-party insurance has dropped 2.2 percent in the same period.
The reduction in car insurance pricing is consistent across all age groups, with the demographics previously thought of as highest-risk – drivers aged 23 to 29 – hit by some of the largest discounts. The average annual cost of car insurance for drivers between 23 and 29 is now just £738.93 – a drop of 12.8 percent from last year.
The data comes from the AA insurance index, which has tracked the price of car insurance since 1994. The decline in auto insurance pricing has been consistent across all age groups, with every demographic except drivers aged over 70 now paying at least 5.4 percent less for their annual car insurance coverage.
Young drivers aged 17 to 22 still pay the most for insurance, with an average annual cost of £1,210.54 for a comprehensive policy. Drivers aged 60 to 69 pay the least for car insurance, with an average policy priced at under £350. The decline in pricing is largely due to a crackdown on fraudulent claims and shady personal injury claims.
Premiums rose steadily over the past four years due to a surge in claims for damage and personal injuries such as whiplash. The injury claims grew so great that Britain acquired a reputation as Europe’s ‘whiplash capital.’ Insurance companies are now armed with tighter rules and restrictions regarding injury claims from accidents.
The end result of these restrictions is lower car insurance for all drivers – a change that, given the rising fuel prices many drivers are forced to deal with – most agree is a very good development indeed.
