Vehicle insurance premiums fall for third quarter in a row

Image conscious Samantha Cowan says displaying her dashcam encourages others to drive more safely

These were first introduced in the 2015 Autumn Budget. A higher number of motoring convictions and bigger, faster cars means men on average pay £95 more than women.

Unveiling a new civil liability bill in March, the Minister of Justice said it would set a fixed amount of compensation for whiplash claims and require medical evidence before such claims can be settled.

The discount - or Ogden - rate is created to compensate insurers for the cost of long-term injury claims.

Unless motorists take the time to shop around, it appears any savings aren't being passed on at renewal time with many insurers blatantly increasing premiums for no obvious reason.

That is according to research by Confused.com, which said the lower prices reflect an optimistic outlook for insurers following changes to the discount rate and a crackdown on whiplash claims.

The Ogden rate is a formula used to calculate compensation for accidents, and a new rate proposed by the government a year ago sparked outrage among insurers and threats of huge premium increases.


European Union gender rules stop insurers from assess drivers based on their gender, but there are other risk factors which cause men to have higher premiums.

However, typically women drive smaller, less expensive cars which contributes to the overall cost of insurance.

That downward trend is expected to continue, with prices falling a further 7% in the first three months of 2018, according to the latest Car Insurance Price Index.

The average male driver between 17 and 20 pays on average £2,348 per year, compared to just £1,699 for women of the same age.

Confused.com also carried out a survey of 2,000 drivers and found that loyalty did not pay as those who stayed with the same insurer and renewed their auto insurance between January and March this year saw their premiums go up by £45 on average.

Welsh motorists also saw a 2% rise, with those living in Central and Northern Wales now paying £629 on average. Motorists in inner London have seen the biggest fall, down 6%, although they still pay the highest premiums at more than £1,000 a year on average.

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