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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.

Driver with key in hand

Average car insurance is now £768 and £13 cheaper than it was 12 months ago, according to Confused.com.

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.

In the last month, the Ministry of Justice has also unveiled a new Civil Liability Bill that is expected to enable insurers to cut premiums.

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Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.