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You can find the current article at its original source at https://www.theguardian.com/money/2018/jul/16/car-insurance-costs-fall-as-fears-over-payout-changes-subside
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| Version 1 | Version 2 |
|---|---|
| Car insurance costs fall as fears over payout changes subside | Car insurance costs fall as fears over payout changes subside |
| (2 months later) | |
| The average cost of car insurance has tumbled by more than a 10th over the past year, as fears subsided about potentially huge increases in payouts after car crashes. | The average cost of car insurance has tumbled by more than a 10th over the past year, as fears subsided about potentially huge increases in payouts after car crashes. |
| Insurers raised premiums sharply in 2017, partly blaming changes to the “Ogden rate”, which is used to calculate compensation awards for serious personal injuries. | Insurers raised premiums sharply in 2017, partly blaming changes to the “Ogden rate”, which is used to calculate compensation awards for serious personal injuries. |
| The average car insurance premium rose to £847 in the second quarter of 2017 but has since dropped back to £752, according to comparison website Confused.com. | The average car insurance premium rose to £847 in the second quarter of 2017 but has since dropped back to £752, according to comparison website Confused.com. |
| “The end is in sight for the rollercoaster that has been car insurance, which has blighted drivers with accelerated prices. Car insurance is now £752 and a whopping £95 (11%) cheaper than it was 12 months ago, putting the true impact of the Ogden rate discount into perspective,” said Confused.com | “The end is in sight for the rollercoaster that has been car insurance, which has blighted drivers with accelerated prices. Car insurance is now £752 and a whopping £95 (11%) cheaper than it was 12 months ago, putting the true impact of the Ogden rate discount into perspective,” said Confused.com |
| When changes to the Ogden rate were first mooted in early 2017, it prompted a furious backlash from insurers, who said it would land them with a multibillion-pound bill. Critics also said the NHS would face a £1bn increase in payouts, following botched operations. | When changes to the Ogden rate were first mooted in early 2017, it prompted a furious backlash from insurers, who said it would land them with a multibillion-pound bill. Critics also said the NHS would face a £1bn increase in payouts, following botched operations. |
| But intense lobbying by the insurance industry, which called the changes “reckless in the extreme”, prompted a U-turn by ministers and a revised formula for payouts. | But intense lobbying by the insurance industry, which called the changes “reckless in the extreme”, prompted a U-turn by ministers and a revised formula for payouts. |
| “Insurers seem to have recovered from the shock of this dramatic change and have been able to soften their prices,” said Confused.com. | “Insurers seem to have recovered from the shock of this dramatic change and have been able to soften their prices,” said Confused.com. |
| But car insurance premiums were already rising steeply before the Ogden rate change. Despite the 11% fall over the year, they remain significantly higher than the lows of 2008. | But car insurance premiums were already rising steeply before the Ogden rate change. Despite the 11% fall over the year, they remain significantly higher than the lows of 2008. |
| Confused.com added: “Prices are still £37 more expensive than two years ago and £74 pricier than half a decade ago. And prices will need to drop by £253 before drivers benefit from the rock-bottom premiums of 2008 (Q2), when car insurance cost just £499, on average.” | Confused.com added: “Prices are still £37 more expensive than two years ago and £74 pricier than half a decade ago. And prices will need to drop by £253 before drivers benefit from the rock-bottom premiums of 2008 (Q2), when car insurance cost just £499, on average.” |
| The company says its figures are the most comprehensive in the UK, based on more than 6m quotes generated by the site every quarter. | The company says its figures are the most comprehensive in the UK, based on more than 6m quotes generated by the site every quarter. |
| The price paid by men for car insurance remains significantly higher than women, despite an EU gender equality directive that came into force in 2012, banning gender discrimination. | The price paid by men for car insurance remains significantly higher than women, despite an EU gender equality directive that came into force in 2012, banning gender discrimination. |
| On average, men pay £92 more than women, although the gap has closed slightly since the previous quarter when it was £95. Insurers said that while they no longer discriminate on gender, men tend to drive more expensive cars with larger engines and make higher-value claims. They also tend to have significantly more motoring convictions than women. | On average, men pay £92 more than women, although the gap has closed slightly since the previous quarter when it was £95. Insurers said that while they no longer discriminate on gender, men tend to drive more expensive cars with larger engines and make higher-value claims. They also tend to have significantly more motoring convictions than women. |
| Young people have enjoyed the biggest fall in car insurance premiums over the past year, largely due to the popularity of “telematics”, which enable insurers to check on a driver’s speed patterns, braking, the type of roads they drive on and what time they drive. | Young people have enjoyed the biggest fall in car insurance premiums over the past year, largely due to the popularity of “telematics”, which enable insurers to check on a driver’s speed patterns, braking, the type of roads they drive on and what time they drive. |
| The average premium for a 17-year-old has dropped by £403 over the past year but even after the fall stands at an average of £1,889. | The average premium for a 17-year-old has dropped by £403 over the past year but even after the fall stands at an average of £1,889. |
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