Good news, cash-strapped motorists of Britain. The AA’s insurance index has revealed the average cost of comprehensive car insurance dropped by almost ten per cent over the last year.
The average policy price was found to be £594.86, down 9.8 per cent from £659.53 in July 2012, marking the most significant drop since the AA introduced the Insurance Index back in 1994.
Drivers aged between 23 and 29 years old will be pleased to know the largest reduction occurred in their age bracket, a drop of 12.8 per cent, making the average fully comprehensive policy cost £738.93.
A crackdown on “no win, no fee” lawyers with the use of tighter government regulations is said to be a contributing factor, as is a reduction of false motor insurance claims via the use of improved detection methods.
The UK’s whiplash culture was said to cost the UK £1.1 billion in 2012 and false motor insurance claims another £610 million.
“This will be welcome news for hard-pressed motorists facing sharp fuel price increases,” AA insurance director Simon Douglas commented. “Insurers were facing a fast-widening gap between premium income and claims costs, largely driven by whiplash injury claims and fraud which saw very sharp premium increases between 2009 and 2011.”
“The news that hundreds of rogue ‘no-win no-fee’ claims firms have been reined in is welcome and in part, falling insurance premiums reflect that. I hope that Britain’s shameful reputation as being the ‘whiplash claim capital of Europe’ will now be put behind us,” he added.
Those aged 70 or above have seen the smallest drop in car insurance policies, a measly 3.9 per cent. Not great, but those aged 60 to 69 will have enjoyed the cheapest annual car insurance of all. Their premiums average £342.73 compared with the £1,210.54 average for 17 to 22-year-olds.
Third-party fire and theft also dropped by 4.8 per cent to an average policy cost of £820.58.
Check out our guide to insurance injury fraud.