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Car insurance: motorists enjoy falling premiums | Car insurance: motorists enjoy falling premiums |
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Car insurance premiums have been falling fast this year, according to the AA. They are down almost 10%, thanks partly to an EC gender directive that came into force last December. | Car insurance premiums have been falling fast this year, according to the AA. They are down almost 10%, thanks partly to an EC gender directive that came into force last December. |
Its latest quarterly British Insurance Premium Index shows that the average "shoparound" quote for an annual car insurance policy dropped by a record 3% over the past three months, and over the past year has fallen by 9.8% to £594.86 – the lowest premium since January 2011. | Its latest quarterly British Insurance Premium Index shows that the average "shoparound" quote for an annual car insurance policy dropped by a record 3% over the past three months, and over the past year has fallen by 9.8% to £594.86 – the lowest premium since January 2011. |
The previous largest fall was 6.4% for the 12 months ending December 2012, itself a record drop. | The previous largest fall was 6.4% for the 12 months ending December 2012, itself a record drop. |
The gender-neutral insurance environment, which came into effect following a European court of justice ruling which was fiercely opposed by the industry, appears to have had a big impact, as have reduced whiplash payouts. | The gender-neutral insurance environment, which came into effect following a European court of justice ruling which was fiercely opposed by the industry, appears to have had a big impact, as have reduced whiplash payouts. |
As expected, premiums for young men have fallen substantially since gender equality was introduced, but those for women have either remained static or have risen by much less than was predicted. | As expected, premiums for young men have fallen substantially since gender equality was introduced, but those for women have either remained static or have risen by much less than was predicted. |
All ages have seen significant premium falls over the past year, but those between 23 and 29 have seen the biggest fall at 12.8% to £738.93. The smallest fall was among drivers aged 70 and above at 3.9% to £407.70. | All ages have seen significant premium falls over the past year, but those between 23 and 29 have seen the biggest fall at 12.8% to £738.93. The smallest fall was among drivers aged 70 and above at 3.9% to £407.70. |
Simon Douglas, director of AA Insurance, says this is the sixth successive quarterly fall in car premiums. | Simon Douglas, director of AA Insurance, says this is the sixth successive quarterly fall in car premiums. |
"The background of falling premiums has helped insurers to more effectively manage the premium gap between men and women, although young drivers have fared least well." | "The background of falling premiums has helped insurers to more effectively manage the premium gap between men and women, although young drivers have fared least well." |
He says he expects car premiums to continue to drop as measures to combat fraud and spurious whiplash injury claims also take effect. | He says he expects car premiums to continue to drop as measures to combat fraud and spurious whiplash injury claims also take effect. |
AA says its shoparound price is an average of the five cheapest premiums from direct providers, brokers and price comparison sites. | AA says its shoparound price is an average of the five cheapest premiums from direct providers, brokers and price comparison sites. |
Meanwhile, homeowners also seem to be benefiting. Douglas says that the shoparound average for buildings cover fell by 2.6% over the last quarter – and 5% over the year – to £130. | Meanwhile, homeowners also seem to be benefiting. Douglas says that the shoparound average for buildings cover fell by 2.6% over the last quarter – and 5% over the year – to £130. |
The average quoted shoparound premium for a combined buildings and contents policy fell 2.5% over the quarter – and 5.8% for the year – to £175.78, he says. | The average quoted shoparound premium for a combined buildings and contents policy fell 2.5% over the quarter – and 5.8% for the year – to £175.78, he says. |
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