Prices for car insurance premiums have dropped for the first time in three years following the Government’s crackdown on whiplash claims, a study has found.
The most significant drop has been in the past three months, the report claims, with annual premiums falling by around £59.
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The drop in premium costs could be attributed to insurance providers reacting to the Government’s reforms on whiplash claims, The Guardian says. These were first introduced in the 2015 Autumn Budget.
Insurers are also expected to pay less for payouts when the “Ogden rate” comes under review in April 2019, the newspaper says.
Despite the falling prices, The Sun reports that 70% of motorists in Britain think their insurance premiums have increased over the past 12 months.
Confused.com believes that many car owners are paying a £45 “loyalty tax” by staying with the same insurer year-on-year, the news site says, rather than shopping around for a new provider when the time comes to renew.
The price car owners pay for insurance also depends on the sex of the driver and the type of vehicle being driven.
Male drivers pay around £95 more on their insurance premiums than female drivers, according to the Daily Express.
Women typically take out insurance for “smaller, less expensive cars”, the newspaper says, which often results in a cheaper premium.