Average premiums have continued to fall in the third quarter of 2019 indicating a trend of reducing premiums, according to the latest Premium Drivers report from comparethemarket.com.
While premiums have historically fluctuated throughout the year, average premiums are now markedly lower than the same time last year. In Q3 2018, average premiums were £732. Premiums have now fallen to £707 in Q3 – a drop of £37 – indicating a more structural decrease in premiums.
The reduction in premiums has coincided with a reduction in the number of new car registrations which has dropped by 3.4% in the year to date. However, premiums remain significantly higher than when Premium Drivers records began in September 2012.
The average premium stood at £559 in the last quarter of 2012 before rising to a peak of £758 in Q4 2017 – a £200 difference. Increased premium prices are most likely a result of a number of Government changes, such as hikes to Insurance Premium Tax (IPT) and changes to the personal injury discount rate