Citizen’s Advice says it supported the Labour Party’s pre-election pledge to urge the Financial Conduct Authority to investigate the unfair targeting of ethnic minorities and those on lower incomes by car insurance companies. It explained how “with new evidence showing that car insurance costs are still higher for people in debt and people of colour, it is vital that [an investigation] happens promptly.”
Yet, despite such a damning account of the past state of affairs, new data shows that things could already be improving for everyone. According to the latest report by the Association of British Insurers (ABI), the average price for car insurance dipped by two per cent in the second quarter of 2024, marking the first fall in prices since 2022.
This means the average price paid fell by £13 between April and June, following an increase of one per cent in the first three months, bringing the average premium to around £635 per year.
The ABI says such a reduction in prices comes despite rising repair costs and the average cost of items stolen from a vehicle hitting what it describes as a “record high” of £3,100. Nevertheless, the ABI’s director general, Mervyn Skeet, said, “After a very challenging period for insurers and customers alike, we’re encouraged to see an easing of increases to motor insurance premiums as claims costs stabilise.”
How much are you paying for your car insurance? Let us know in the comments section below…
