The National Insurance Corporation (NIC) has published details of how auto insurance companies are offering discounts to all-homeowners, but not to people who are over 65.
The latest data from the National Insurance Institute for Health & Care Excellence (NIHCE), released to the BBC, shows that people who bought their car in 2016 can now get an extra five years of coverage at a rate of £9,600 for an individual or £13,600 per family.
The average premium for a single family is now £1,200, compared to £1.3 million a decade ago.
However, if the total value of the insurance policy is more than £100,000, the premium will be reduced to £7,400, a decrease of around 50%.
This is the first time NICECE has released data showing discounts for the entire family.
The average family premium has now fallen to £2,200.
The NIC said the new offer was “a reflection of the economic uncertainty that has impacted consumers” and would be implemented in all 50 states and territories.
“Our focus is on ensuring that everyone in the UK has the best possible value for money when buying and using their car,” a spokesperson said.
The announcement comes after the Insurance Institute of Australia (IIA) published data showing the average price of a new policy on the private market had fallen from £766 a year earlier to £637, meaning people are no longer paying more than they would for a standard policy.
The IIA also revealed that car insurance rates in 2017 were “the lowest in 20 years”, with the average premium of a policy on private roads rising from £6,988 to £8,827.
The figures show that the cost of owning a car has fallen significantly, with a number of insurers lowering their rates, including British car insurer, the National Grid.
“We are seeing a real benefit to the private insurance market in the past couple of years, and are encouraged that consumers are enjoying the benefits of the recent reforms,” a National Grid spokesperson said in a statement.
But some insurers have raised concerns about the impact of the changes, saying that the reduction in premiums will leave people more exposed to claims.
The NICE figures, however, show that rates for private car insurance are rising faster than rates for commercial vehicles.
“This is good news for people who live in areas where there is more competition and demand for new cars,” the NICE spokesperson said, adding that “the overall value of their policies has risen significantly”.
“It is important that people understand that all-out prices will remain the same over the long-term.”
Read more about the health system from BBC News.
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