Drivers across the UK will see a £13 reduction in their car insurance costs, marking the first decrease in premiums in two years, according to the Association of British Insurers (ABI). The ABI’s recent findings reveal that the average cost of car insurance fell to £622 in the second quarter of this year, down from £635 in the first quarter.
This decline represents a two percent drop in typical motor insurance premiums from April to June, a notable shift from the previous quarter’s one percent increase. Mervyn Skeet, ABI’s Director of General Insurance Policy, expressed optimism about the reduction, stating, “Following a challenging period for both insurers and customers, it is encouraging to see a stabilization in claims costs and a subsequent easing in premium increases.”
Despite this positive development, Skeet emphasized the need for continued focus on managing claims costs. “Although this decrease is a step in the right direction, our commitment to addressing claims costs remains a top priority to benefit consumers and our member insurers.”
This reduction in insurance costs comes as a welcome relief amidst the ongoing Cost of Living crisis.
