The latest Confused.com Car Insurance Price Index in association with Willis Towers Watson is out.
According to the quarterly index, the average cost of car insurance now stands at £809. The Q1 2020 figure is lower than the £815 average recorded in the fourth quarter of 2019 but is higher compared to the £762 posted in same period last year.
“Premium levels for the first quarter have continued to fluctuate monthly with little evidence of an emerging overall trend, which reflects the uncertainties faced by the market and the challenge of balancing conflicting future trends,” explained Graham Wright, UK lead of property & casualty personal lines pricing at Willis Towers Watson.
“The index data represents a largely pre-COVID period and does not yet give insights into the market’s pricing response to COVID-19, although there is widespread recognition of claim frequency reductions while lockdown measures persist and acknowledgement that these may be offset to some degree by severity increases, all of which adds to the uncertainty in the market.”
Meanwhile Confused.com data services head Steve Fletcher pointed out that there is evidence to suggest that it will be a while before prices calm down. Fletcher believes premiums will continue on the upward trajectory witnessed over the past year and a half.
“While we don’t expect insurers to introduce discounts to account for fewer miles being driven, people are looking to make savings at this financially challenging time,” he added. “The winners will be the insurers that listen to customer needs and simultaneously react to market movements. Societal uncertainty means insurers will need to closely follow this situation as it unfolds.”
