Annual will increase in quoted automotive insurance coverage premiums sluggish to 9.8%

• The over-50s and drivers in Wales are benefiting essentially the most whereas Londoners proceed to endure larger will increase
• In August, motorists mostly obtained a quote between £500 and £749, Client Intelligence information exhibits

Value rises for automotive insurance coverage are persevering with to sluggish, however motorists nonetheless face an annual rise of 9.8% in common quoted premiums, in keeping with the newest Client Intelligence Automobile Insurance coverage Value Index¹.

Nevertheless, a lot of the enhance occurred between August final yr and December, with common quoted premiums remaining unchanged over the previous three months.

The over-50s and drivers in Wales are benefiting essentially the most from the slowdown, with common quoted premiums rising by solely 2.6% for the over-50s and simply 0.8% in Wales. In distinction, Londoners proceed to face challenges, with common quoted premiums up 15.6% over the yr to August.

Information exhibits that in August this yr, the commonest quotes for drivers ranged between £500 and £749, accounting for 22% of the 5 most cost-effective (Rank 1-5) quotes on worth comparability websites. When contemplating the most affordable premium accessible to every shopper, round 68% of preliminary quotes had been for lower than £1,000. Nevertheless, solely 30% of drivers below 25 had been capable of safe quotes beneath £1,000, in comparison with 66% of these aged 25 to 49 and 89% of these over 50.

“Whereas many insurers reported an easing of claims inflation as a part of their half yr outcomes, claims prices stay a weight on profitability. Extra insurers are preventing for the perceived safer dangers, with this competitors driving down costs for the over 50s,” says Max Thompson, Insurance coverage Perception Supervisor at Client Intelligence.

“This perspective to danger carries via to regional developments, too, with London seeing will increase in quoted premiums of 4.4% within the final three months, in comparison with the following highest within the North-East with a 1.8% enhance,” provides Thompson.

Lengthy-term view

Common general quoted premiums have risen by 122.8%—greater than doubling—since October 2013 when Client Intelligence first started amassing information.

The over-50s skilled the most important enhance, with premiums rising by 155.1%, whereas under-25s noticed the smallest enhance at 42.6%. Drivers aged 25 to 49 noticed common premiums enhance by 144.5%.

Age variations up to now yr

Within the final 12 months, the over-50s skilled the bottom enhance in quoted premiums at 2.6%, and essentially the most vital lower over the previous three months, at 3.8%.

In the meantime, under-25s noticed the most important annual enhance at 19.0%, with a 4.5% rise within the final three months. Drivers aged 25 to 49 noticed a ten.7% enhance since August 2023, with a 0.8% rise up to now three months.

Telematics

The proportion of rank one to 5 quotes from telematics suppliers dropped to 13%—the bottom degree since June 2016—from 16% in Could.

Youthful drivers had been most affected, with telematics suppliers accounting for 36% of the highest 5 quotes for under-25s, down from 40% in Could. The proportion for drivers aged 25 to 49 slipped from 13% to 12%, whereas it remained unchanged for the over-50s at 5%.

Regional variations

All areas noticed will increase in common quoted premiums over the previous 12 months, starting from the best enhance of 15.6% in London to the bottom enhance of 0.8% in Wales.

Over the previous three months, there have been additionally notable regional variations, with London seeing a 4.4% rise in premiums, whereas Wales skilled a 3.3% drop. Six areas recorded decreases in common premiums, whereas 5 noticed will increase.