Willis Tower Watson’s Car Insurance Price index has shown that comprehensive car insurance premiums have fallen by 1% (£5) in Q3 2020, due to the COVID-19 Pandemic.
The index which was released in partnership with confused.com shows that the average cost of car insurance has now fallen for three consecutive quarters which leaves the average policy to now cost £765.
This follows an £18 (2%) decrease over the past year, according to the index, which is based on price data compiled from almost six million customer quotes per quarter.
Graham Wright, UK Lead of P&C Personal Lines Pricing at Willis Towers Watson, commented: “The further fall in premiums during the last quarter is perhaps unsurprising as motor insurers reflected on a relatively positive experience for the year to date.
“But with further Covid restrictions being introduced and a market response to the FCA’s recently released pricing practices report still to be factored in, uncertainty in premium levels continues.”
Drivers around Scotland have benefited from the greatest quarterly drop in prices, with their insurance premiums decreasing on average by 5% (£30) to £5541.
Inner London was the only region in the UK to buck the downward trend in prices, with the cost of comprehensive car insurance increasing by 3% (£32).
More locally focused data shows that towns based in Scotland saw the greatest quarterly drop in prices, led by Galashiels where premiums fell by 7% (£42) and drivers now paying an average of £542 in the last three months, followed by Glasgow and Motherwell, with both benefiting from a 5% decrease in premiums.
Wright further noted: “One of the biggest challenges for insurers and intermediaries alike will be managing the transition to new world pricing given current market competitive pressures, and therefore deciding how and at what point price changes should be made. It certainly remains one of the most demanding times for insurance pricing.”
