The average motor insurance premium plunged by 9.4% over the year to August, according to analysis.
The average motor premium now stands at £751, with over a quarter (27%) of the cheapest insurance quotes now coming from telematics firms, Consumer Intelligence said. This is the highest proportion since it started collecting data in 2013.
Telematics policies can help people to access cheaper car insurance policies by rewarding them for good driving.
The research looks at prices offered to thousands of people by price comparison websites and some direct insurers including comprehensive and third party-only cover, analysing the top five prices for each person.
The under-25s (down 10.5%) led the way with the biggest yearly decrease, with motorists aged 25 to 49 (down 9.6%) and the over-50s (down 8.2%) following.
Harriet Devonald, Consumer Intelligence’s insurance pricing expert, said: “Take-up of telematics policies has always been higher with younger drivers in a bid to help them get on the road for less, but even this age group are now using the technology more – with 62% of the cheapest five quotes now telematics-based for the under-25s.”
Prices have fallen by nearly 20% from a September 2017 peak, Consumer Intelligence said.
Drivers living in London (£1,265) continue to be the most expensive to insure, with those in the North West (£984) of England following in second. The South West of England (£529) remains the cheapest region across Britain to buy car insurance, the report said.
Here are the decreases in typical motor insurance premiums in the 12 months to August and the average premium when looking at the five cheapest deals offered, according to Consumer Intelligence:
– South East minus 7.3%, £610
– Scotland, minus 8.0%, £565
– East Midlands, minus 8.3%, £554
– Eastern England, minus 8.7%, £606
– South West, minus 9.7%, £529
– West Midlands, minus 9.8%, £752
– Wales, minus 10.1%, £576
– Yorkshire and the Humber, minus 10.3%, £687
– London, minus 10.4%, £1,265
– North West, minus 10.7%, £984
– North East, minus 13.2%, £770
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