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The cost of comprehensive motor insurance continues to fall as ABI launches its quarterly average motor premium tracker

The cost of the average private comprehensive motor insurance policy fell by 9% during 2013 compared to 2012,  according to the ABI’s new quarterly average private comprehensive motor insurance premium tracker, launched today (January 27, 2014).

The ABI’s new average premium reflects what motorists are actually paying each quarter for comprehensive motor insurance, and is based on data from ABI members who represent around 90% of the UK private motor insurance market.

Key findings from quarterly data during 2012/2013 show that:

  • The average private comprehensive motor insurance premium fell 9% on 2012 to £374 in 2013
  • During the last quarter of 2013, the average private comprehensive motor insurance premium was £370, nearly £40 lower than the last quarter of 2012
  • Since the first quarter of 2012 the average cost of a private comprehensive motor insurance policy has fallen by 11%
 2012 Q12012 Q22012 Q32012 Q42013 Q12013 Q22013 Q32013 Q4
Average Comprehensive Private Motor Premium £415 £415 £404 £406 £382 £378 £365 £370
Year on Year change £         -£33 -£37 -£39 -£36
%         -8.0% -8.9% -9.7% -8.9%
Quarter on Quarter change £   £0 -£11 £2 -£24 -£4 -£13 £5
%   0.0% -2.7% 0.5% -5.9% -1.0% -3.4% 1.4%

 

James Dalton, the ABI’s Head of Motor Insurance, said:

"Motorists, politicians and the media rightly want to know what drives the cost of car insurance, which is why we are launching our new average private comprehensive motor insurance premium tracker. The 9% fall in the average comprehensive motor premium last year shows that insurers are fulfilling the commitment they made to the Government to pass savings from changes to the civil litigation system to hard-pressed motorists through lower car insurance premiums.

"But more can be done to get premiums even lower which is why the Government  needs to press ahead with tackling exaggerated and fraudulent whiplash claims which honest motorists are sick of paying for through their insurance premiums.

"The car insurance market has faced a number of increased cost pressures in recent years, including dealing with an explosion in the number of whiplash claims, the excessive legal fees attached to low-value personal injury claims, lower investment returns and higher capital costs associated with catastrophic injury claims. Despite these pressures, the market has remained highly competitive with motorists able to shop around for the best car insurance deal."

These figures come as latest ABI-commissioned research shows that British consumers are more likely to shop around for the best motor insurance deal than for an energy supplier, mobile phone contract, or cash ISA.

Of the 1390 respondents who purchased motor insurance in the last 12 months:

  • 81% considered motor policies from at least one other provider before they purchased their policy

This compares to:

  • 77% of those that purchased energy contracts looked at alternative energy suppliers, 
  • 75% of those with a cash ISA compared cash ISAs, and 
  • 64% of those with a mobile phone contract sought the best mobile phone deal.

More information is available in our industry data section.


Last updated 01/07/2016