According to the Association of British Insurers (ABI) its latest Motor Insurance Premium Tracker indicates that the average cost of motor insurance has dropped to its lowest in five years; with the average price of motor insurance falling by £38 within the first half of this year.
In part, the fall can be seen to reflect insurers passing on cost savings following fewer claims being settled, with fewer vehicles being on the roads, during the previous national lockdowns.
The Tracker is currently the only market survey that looks at the price consumers pay for their cover, as opposed to the price they are quoted.
The highlights from the tracker for the second quarter are:
- The average price paid for comprehensive motor insurance in the second quarter of 2021 was £430; down £6 on the previous quarter and falling by £30 (7%) over the last year, since the same quarter, 2020.
- The current average motor insurance premium of £430 stands at its lowest since quarter one 2016.
- Over the first six months of this year the average motor premium has fallen by £38 since quarter four last year.
- The fall in price comes despite the continued cost pressures faced by insurers of rising repair bills.
For more information on this story go to the ABI webpage.