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Car insurance: motorists enjoy falling premiums Car insurance: motorists enjoy falling premiums
(2 months later)
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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