Motor insurers are missing out on the market rally after a report showing rates slipping back in the first quarter.
According to the latest Confused.com/Towers Watson car insurance price index, the average quoted premium slipped by 0.5% in the first three months of the year to £591 compared to the previous quarter. This followed increases in the last two quarters and rises in five of the last seven months. Year on year the decrease was 0.8%. Steve Sanders, finance director at Confused.com said:
To see prices remain largely static in the first quarter of 2015, with just a marginal quarterly decrease of 0.5%, is not entirely surprising. Traditionally, insurers increase their prices in December before seeing a reduction in January – this is to be expected. In fact, in 5 out of the last 6 years, the first quarterly change has been less than that in the immediately preceding fourth quarter.
However, the Index results that we’ve seen over previous quarters indicate an underlying gradual increase in premiums, with monthly figures showing prices rising in 5 of the last 7 months. Based on the market movements we’ve been seeing over previous quarters, we’d expect to see these gradual increases return in the coming quarters, growing in size and frequency as the year develops.
So Admiral has lost 4p to £15.87, Direct Line has dipped 1.3p to 328.2p and esure is off 1.3p at 216.3p.
