PwC has forecast a 10% drop in motor insurance premiums for drivers in Scotland and a 15% drop for those in Northern Ireland. This follows the change in the personal injury discount rate in these two countries. Following statutory reviews, the rate will change from -0.75% to +0.5% in Scotland, and from -1.5% to +0.5% in Northern Ireland.

Mohammad Khan, head of general insurance at PwC UK, said: “Scottish and Northern Irish drivers will be happy to see their premiums fall, and drivers under the age of thirty - who typically have the most expensive policies - should benefit from the most significant savings.

“This could also be good news for drivers elsewhere in the UK - the motor insurance market is so competitive that some insurers will see this change in Scotland and Northern Ireland as an opportunity to be more competitive and lower prices elsewhere in the UK, preempting a rate change in England and Wales expected early next year.”