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The worst of the motor insurance price hikes could finally be over, despite quotes jumping by around a third over the past year, according to an index.
The average quoted price of car insurance increased by 34% in the year to May, insights firm Consumer Intelligence said.
In May this year, drivers most commonly received a quote between £500 and £749, the research indicated.
But the worst could be over, with average quotes falling by 1.3% in the three months to May, marking the first time since the last three months of 2021 that there had been a quarterly fall in prices.
However, average overall quoted premiums have more than doubled since October 2013, when Consumer Intelligence first started collecting data.
Wales, London and Yorkshire and the Humber recorded particularly large quarterly falls in quoted motor insurance prices in May, according to the index.
The south west of England bucked the general trend with quoted prices increasing by 0.8% over the three months to May.
Cost across the UK
Here are increases in quoted car insurance prices over the 12 months to May, followed by the increase or decrease in the three months to May, according to Consumer Intelligence:
– Scotland, 39.1%, minus 0.1%
– West Midlands, 37.8%, minus 0.7%
– London, 37.7%, minus 2.1%
– South East, 35.8%, minus 1.9%
– Eastern England, 35.6%, minus 0.5%
– South West, 34.5%, 0.8%
– East Midlands, 32.3%, minus 1.2%
– North East, 30.3%, minus 1.0%
– North West, 30.2%, minus 1.5%
– Yorkshire and the Humber, 29.3%, minus 2.1%
– Wales, 25.6%, minus 3.9%
Max Thompson, insurance insight manager at Consumer Intelligence, said: “The escalation of car insurance premiums may finally be at an end, with insurers now reducing premiums and jostling to get to the top of screen on the price comparison website results pages.
“Insurers are making their pricing efforts more visible to consumers.
“There are now more price cut offers visible on quotes than messages relating to cover benefits, which is the first time this has been the case since July 2022.”
The research looks at the average of the cheapest premiums returned on price comparison websites.
Researchers also pointed to evidence that telematics providers have become slightly more competitive, by offering a higher proportion of the top quotes in May compared with February.
This is having a particularly positive effect for younger drivers, the report has said.
Telematics policies use technology to measure how a vehicle is being driven.
The policies help insurers to offer premiums that are more tailored to the users of a vehicle.
Insurers have previously pointed to rises in their own costs, including for repairs, replacement vehicles, labour and raw materials.
