Average motor premiums still falling: Confused/Towers Watson

The average cost of comprehensive car insurance has fallen by £47 so far in 2012 according to the latest version of the Confused.com/Towers Watson car insurance price index.

The cost of comprehensive cover fell by 2.3% between April and June to an average of £797, a drop of 7.1% compared to 12 months ago when the average was £858.

Third party, fire and theft (TPFT) premiums also fell in the second quarter, although at a slower rate of 0.8%, to an average of £1,149.

The latest findings, that are based on nearly 5 million customer quotes, showl:

• Having received the largest price decreases in each of the previous two quarters, 17-20 year old women saw an average 0.5% increase in the quarter to £1,878 – the only group to see prices rise
• Comprehensive prices are falling in all regions. The west midlands has had the lowest rate of decrease in the past 12 months (-3.6%) and the west of England the highest (-10.5%)
• Drivers living in Uxbridge are the only people to have seen average premiums increase in the past 12 months. However, east London has the highest average premiums at £1,628.

Towers Watson global pricing and product management leader Duncan Anderson said: “There still have to be question marks over whether rate reductions are premature given what we know about overall market profitability.

“The fact that the latest statistics from the Institute and Faculty of Actuaries show an 18% increase in the proportion of motor accidents having a personal injury claim continues to cast a lingering shadow over insurers.”