Industry experts say that this month’s marginal premium price growth, when combined with evidence of the 5 per cent drop in prices the month previous, could mean that the motor car insurance market may be reaching a relative equilibrium. The information, provided by an online car insurance comparison website, examined hundreds of insurance quotes throughout several different motorist profiles in order to track policy price changes.
This news bodes well for UK motorists already reeling from two years’ worth of rampant premium price inflation, yet not all drivers have cause to rejoice. The monthly report indicated that female drives aged 45 and male drivers aged 55 increased 4 per cent and 3 per cent price increases respectively, while younger male drivers, who pay some of the most expensive premiums in the country, experienced an approximate 1 per cent easing on their premium prices.
Despite the good news, inflation is still up for the year, as August premium prices were 10.5 per cent more than they were 12 months prior. Particularly hard hit were men aged 25 and 45, who saw their annual insurance payments rise by 24 per cent and 30 per cent respectively, while 35 year old females watched their costs decrease by approximately 9 per cent.
Industry experts were glad to see the motor insurance market returning to relative stability, especially since annual inflation is still more than twice the Retail Prices Index and will take quite some time to decline.