Insurance premiums in Wales have dipped by about 5% over the last 12 months, as a report shows fewer cars are written off in Wales after accidents.
The change was less over the summer at approximately 3% compared to the summer of 2019, according to figures from Comparethemarket.
In Wales this year, the average premium is £572.33p and the UK figure is £695.
While the British average has not changed for over-65s, it has gone down by 7% for the 17-24 year olds but risen by 5% for 35-44 year olds.
Dan Hutson, head of motor insurance, at comparethemarket.com said: “Car insurance premiums continued to decline for the fourth consecutive month in August, dropping to a new low of £695 – the lowest level seen in over four years. This £6 decrease on July’s levels will be welcome news for drivers, and is likely a result of insurers facing pressure to pass on cost savings from a reduced amount of claims during the coronavirus lockdown onto customers.
“Differences in the cost of motor insurance depending on age appear to be increasing, with those under the age of 25 paying an average of three times – or £777 – more than those over the age of 65.
Premiums for under-25’s increased by £64 in August, while over-65’s benefitted from a £6 decrease in the cost of insurance. While higher prices for younger drivers are to be expected due to the increased statistical likelihood of an accident, this difference in cost is considerable.”
Almost one in three (29%) UK drivers have had a car written off, 9% twice or more.
Drivers in East of England (37%) are more likely than any other UK region to have written a car off, followed by Northern Ireland (33%) and the North West (32%).
Drivers in Wales (24%), East Midlands (25%), Scotland (26%) and the South East (26%) are the least likely to have written off a car.
In the Opinium survey of 2,000 UK drivers, for InsuretheGap.com, a leading provider of GAP (Guaranteed Asset Protection) insurance for new and second-hand cars, almost a half (49%) said other drivers’ actions caused their cars to be written off. Almost one in ten drivers (8%) had their cars stolen and then written off by the insurer, and 3% cited a a technical issue or fault in the car.
Over a third (36%) admit they were at fault when their car was written off. 15% said they were the only vehicle involved, when they wrote the vehicle off (men 19% and women 10%), and 16% said they were at fault with another vehicle involved (men 14% and women 18%). 5% said that they and the other driver(s) were at fault in the accident.
If a car is written off, the insurance company usually only pays out what the car was worth at the time of the incident. Because of depreciation, this can be significantly less than what was paid for it.
Half of drivers (50%) said that if their car got written off and the insurer only paid out half of what they had originally paid for the car, they could not afford to buy exactly the same model again (men 45% and women 55%).
Ben Wooltorton, Chief Operating Officer of InsuretheGap.com, said, “Cars lose their value very quickly once driven off the forecourt. It pays to protect your investment should your car get written off, as the insurance company will generally only pay its value at the time of the incident, not what you paid for it. It also won’t take into account if you’re still paying back finance on it.”
He continued, “GAP insurance will pay out the difference between what you paid for the car, and the value when it’s written off. GAP insurance is available from standalone providers, like InsuretheGap.com, for usually significantly less than the insurance offered by the car showrooms. It’s always best to shop around.”