Consumer Intelligence finds uptick in telematics provision for older drivers

The latest Consumer Intelligence Car Insurance Price Index shows that 20% of the five cheapest quotes for drivers aged 25 to 49 now come from telematics firms, after they have long been positioned competitively for younger drivers.

An uptick has also occurred for the over 50s, with telematics products now accounting for 8% of the five cheapest quotes returned for this age group.

This insight comes from the latest Consumer Intelligence Car Insurance Price Index, which reveals car insurance premiums have plummeted 8.4% in the last 12 months, with the average policy costing £779. But the increase in telematics products appearing in the top 5 results on price comparison websites (PCWs) isn’t the only downward driving force in the market.

Harriet Devonald, product manager at Consumer Intelligence, said: “We are seeing a downward trend for premiums across the board—in all of our age and regional segments—and it’s not just the uptick in telematics quotes behind the plummeting premiums.”

“With the FCA’s pricing remedies coming in at the end of the year, some brands are looking to gain volume while they can. Others, who benefited from a quiet year of motor claims in 2020, have been able to pass savings onto customers, whilst other brands are following the market downward in order to remain competitive.”

“It’s unlikely that this trajectory will continue as we move through the second half of the year. Once the new regulation takes force, we are likely to see a hardening market once more.”

Long-term view

Average overall premiums have increased 14.5% since October 2013 when Consumer Intelligence first started collecting data.

Prices have now fallen 18.2% from their September 2017 pricing peak—and they are now at levels last seen in 2016. 

Age differences

The cost of car insurance has decreased broadly in unison across all our age groups.  

Drivers aged 25 to 49 (-2.1%) saw their premiums drop the most in the last three months, although the over 50s (-1.5%) and under 25s (-1.1%) witnessed broadly similar falls.

It was much the same story when looked at over 12 months. Again, the 25 to 49 year olds (-8.8%) saw premiums decrease the most—closely followed by the under 25s (-8.4%) and over 50s (-7.9%).

The cost of car insurance for the under 25s is now £1,735; for the 25 to 49 year olds, it’s £586, with those over 50 typically paying just £345 for an annual policy.

Regional differences

Scottish drivers (1.5%) were the only motorists in the UK to see their premiums increase in the last three months. Whereas drivers in the Northwest (-3.2%) and Yorkshire and Humber (-3.1%) saw significant falls.

All regions witnessed declines when observed over a 12-month period—the highest fallers being the Northeast (-10.9%), Southwest (-10.1%) and the West Midlands (-10%).

Londoners (£1,456) continue to be the most expensive drivers to insure, with the Northwest (£994) following in second—a fair distance behind.

At the other end of the scale, the Southwest (£517) is now the cheapest UK region for car insurance, followed closely by Scotland (£524) and the East Midlands (£532).

Mark Dugdale