CM Insider

Lockdown year fuels over 8% drop in insurance costs

► Car insurance premiums have dropped by 8.4% in the last 12 months according to Consumer Intelligence, with the average policy costing £779, with the biggest cause for the savings down to an increase in telematics quotes for younger drivers.

The insights partner for financial services also stated that, in some cases, insurers benefitted from a quiet year of motor claims throughout 2020 and have therefore been able to pass savings on to their customers. However, drivers in Scotland haven’t had so much good fortune in the insurance stakes, as it’s the only area in the UK where premiums have increased in price.

Telematics have to-date been mostly used to compile quotes for younger drivers who are new behind the wheel. Although, this latest research shows that 20% of the five cheapest quotes for motorists aged 25-49 now come from telematics firms, which is the highest recorded figure for the age group since Consumer Intelligence started collecting