Vehicle insurance costs fell slightly in Q1, finds Confused.com

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These were first introduced in the 2015 Autumn Budget.

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

It also confirmed plans to reverse last year's changes to the Ogden rate - which is used to calculate injury compensation - after hearing insurers' complaints that victims were being overcompensated.

According to confused.com, 59 per cent of drivers stuck with the same insurer, instead of shopping around. "More than one in three motorists did this a year ago, overpaying on their insurance by £600m as a result".


An EU gender directive was set up to stop motorists' premium cost to be judged based on their gender.

'For example, men tend to drive more expensive cars with larger engines, on average, so they make higher-value claims. However, they are only paying £543 - significantly less than the national average.

United Kingdom men are now paying £95 more than women, while young male drivers aged 17-20 are still paying the most of any demographic, £2,348 on average, compared to the £1,699 paid by their female counterparts.

Meanwhile, those aged between 61 and 65 enjoy the lowest prices, with the typical policy costing just £363.


Similarly, prices decreased across all age groups, with drivers aged 27 benefiting from the largest quarterly cut in premiums at 11%, while 68-year-old motorists experienced the smallest drop at 3%.

"Insurers feel confident in calming their premiums, and our quotes data shows prices are down annually for the first time in three years", Confused.com head of data insight, Steve Fletcher, said.

Despite recent price drops, some drivers are facing more expensive auto insurance costs than others - in particular men. 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. However, drivers in London can celebrate - their premiums have fallen by around 6% compared with the same period in 2016/17.

Louise O'Shea, CEO at Confused.com, says: "Finally drivers have had some good news with the end of rising vehicle insurance costs in sight".


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