Although reports may suggest that insurance premiums are going up, the figures that were recently published by the Association of British Insurers (ABI) suggest that there was an overall decrease in the average motor insurance premium paid in 2018, with the seasonal rise in quarter four premiums being lower than normal. According to the latest ABI motor premium tracker, this is the first calendar year fall since 2014. The decrease came regardless of the rise in the average insurance premium paid in quarter four last year over the previous quarter. This was in line with the seasonal trend.
The Association of British Insurer’s premium tracker is the only survey which measures the price that consumers pay for their motor insurance, rather than the prices quoted. In 2018, the average price paid for motor insurance was £477, which was down by 1% from the previous year. Following the seasonal trend, the average price paid for motor cover in quarter four of 2018 had risen slightly on the previous quarter (up by 2% to £479).
However, this was the lowest quarter three to quarter four rise since 2013, with the increase in average premiums reflecting reduced car sales and the insurers’ fixed costs needing to be spread across fewer motor policies.
About Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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