Car insurance prices fall for first time in three years
Average car insurance costs have made a U-turn for the first time in three years, possibly as a result of forthcoming personal injury compensation reform.
Research from the latest Confused.com Car Insurance Price Index in association with broker Willis Towers Watson found that the average car insurance premium now stands at £768, £13 cheaper than it was 12 months ago.
Confused.com said the softening in pricing could be the result of the Government’s recent announcement of a proposed change in the basis of the calculation of the Ogden discount rate, which determines the basis of settlement and so cost to insurers of the very largest personal injury claims. The review is expected in April 2019 and could see insurers pay out less when a claim is made.