Driven by competition, the average cost of car insurance in the UK fell by 7.1 per cent to £797 in the second quarter of 2012, according to a new index compiled by the price comparison website Confused.com and Towers Watson, a global consulting firm.
Despite the decline and impending gender directive implementation, men are still paying on average £110 more than women and drivers aged between 17 and 20 are being quoted comprehensive premiums of £2,491.
The average price for 17-to-20-year-old male drivers in Manchester/Merseyside is £5,394, while in central Scotland, they are quoted a more modest £2,999. Young male drivers aged 20 or younger in inner London can expect to pay an average of £5,330 per year.
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Regionally, the west of England has seen the biggest fall in prices, as average premiums for comprehensive cover dropped by 10.5 per cent year on year. The largest year-on-year price drop of 10.5 per cent was recorded for 21-year-olds.
Gareth Kloet, head of car insurance at Confused.com, said:
Competition between car insurance providers is currently very high, which means it’s a great time to get a deal on your car insurance. At Confused.com we have more than 130 insurers competing for customers and so drivers can benefit from this competitive market by shopping around.
When it comes to men versus women, any gender differences have to be factored out of quotations after December this year and so other factors such as the type of car you drive and the distances you expect to cover will become more important in the quote process. We anticipate that drivers will continue to reduce their annual mileage as a result of high motoring costs and seek cheaper vehicles in their search for more affordable cover.