Motor Insurance Federation of British Insurance Companies
Car insurance rates are at their lowest level in seven years
Today, the Association of British Insurers (ABI) announced that car insurance rates have fallen on average to their lowest levels since 2015.
Total prices, which are now £416, are down 5% from 2021 levels following the FCA's decision to offer the same price to new and existing customers and end 'loyalty bonuses'.
According to the ABI, the new policy means new customers will now get the short end of the baton, with the average premium paid being £105 above renewals.
New policies cost an average of £480 - £34 more than in 2021 - while renewals cost around £375 - down £55.
“While absorbing them is very difficult, insurers are doing everything they can to keep rates as competitive as possible as millions of families face a cost-of-living crisis,” said ABI's general insurance policy manager. James Dalton.
"For some, it may be helpful to find the font that best suits their needs."
The news comes on the heels of last week's data that highlighted a rise in auto insurance premiums for the first time in 18 months.
According to financial services firm Confused, the cost of car insurance is £12 more than it was a year ago, according to City A.M.
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