AVERAGE CAR INSURANCE PREMIUMS FALL IN SCOTLAND
Car insurance premiums have gone into reverse, but drivers in Scotland have seen a smaller reduction in premiums than other countries in the UK.
The average premium across Britain fell by 5.5 per cent over the last year, with average premiums dropping over the last eight consecutive months.
New analysis, from insurance research experts Consumer Intelligence (CI), shows that average premiums in Scotland dropped by 0.1 per cent to £522.
Scotland had the lowest premiums to begin with, however, and still sees the cheapest insurance premiums in the UK.
The average premium in London is £1,024 per year while in North West England drivers pay £847 on average.
Bills hit a record high in September 2017.
Average premiums have fallen for eight straight months as insurers compete for business.
Under-25s are the biggest winners, with bills falling by 11.9 per cent as they benefit from the continuing growth of black box technology – so-called telematics – which rewards safer driving.
Around 61 per cent of the most competitive policies for under-25s are now offered by telematics providers.
However, younger drivers pay an average £1,635 a year compared with £413 for over50s and £629 for motorists aged between 25 and 49.
Average car insurance bills are still 21.9 per cent higher than in October 2013 when Consumer Intelligence–whose figures are used to calculate official inflation statistics – first started collecting the data.
John Blevins, Consumer Intelligence pricing expert said: “Insurers are now free to compete on price without Insurance Premium Tax increases or changes to the Ogden rate which sets compensation for major personal injury claims.
“That is very welcome and should provide some relief for drivers when other motoring costs such as petrol prices are on the rise.
“The downward trend should continue with the increasing adoption of telematics helping to maintain the momentum.”