LONDON, April 9 The cost of car insurance in the
UK has continued to slide in 2014, sweeping aside hopes among
insurers that a price war that has raged for two years was
starting to ease.
A survey published on Wednesday by price-comparison website
Confused.com and consultancy Towers Watson showed the average
premium for a comprehensive policy in the UK has dropped below
600 pounds ($1,000) for the first time since 2009.
This marks a 7.5 percent drop in the first quarter of the
year, following a 1.1 percent fall in the previous quarter which
insurers hoped marked a slowing of the price falls.
The cost of a comprehensive policy has fallen by almost a
fifth over the last 12 months, the survey found.
Analysts put falling motor insurance premiums down to
growing use of price-comparison websites and legal reforms that
make it harder to pursue fraudulent injury claims.
"Good news for the consumer but grim reading indeed for the
UK personal motor insurers," said Shore Capital analyst Eamonn
Flanagan, who has a 'sell' recommendation on insurers Admiral
, Direct Line and Esure.
($1 = 0.5970 British Pounds)
(Reporting by Chris Vellacott; Editing by Elaine Hardcastle)