Drivers finally have reason to celebrate as new data shows car insurance prices have seen the biggest drop in more than 10 years.
The average cost of car insurance in the UK has fallen by £161 or 16 per cent over the last 12 months, marking the biggest monetary annual decrease on record.
On average, motorists can expect to pay £834 for their car insurance, which coincides with the cheapest price recorded in 18 months.
Experts are now suggesting that car insurance prices could continue to fall in the coming months, a long-awaited change for motorists.
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Car insurance prices have seen the biggest drop in more than 10 years
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Depending on their age, some motorists could see a saving on their car insurance policies of more than £200, representing an 18 per cent saving compared to 12 months ago.
The youngest drivers could see prices drop £557 year-on-year. The average 18-year-old will now pay around £2,605 for their cover.
More than one in three UK drivers say their car insurance is now more expensive than it has ever been, prompting them to take action to be able to afford it.
This includes taking money out of their savings (19 per cent), cutting back on personal spending (15 per cent) and switching to paying monthly for their coverage (10 per cent).
Rhydian Jones, motoring expert at Confused.com car insurance, said: “Car insurance prices have dropped significantly, with the average premium in the UK at the lowest point in 18 months.
“After a turbulent couple of years and record-high prices, this is the good news we’ve all been waiting for. However, it’s clear that not all drivers are seeing these savings.
“Those who’ve received their renewal recently might’ve seen their price increase. This can be confusing, as with another year’s no-claims bonus and more driving experience, this should, in theory, drive prices down.”
Despite the new savings, almost six in 10 drivers who received their renewal price last quarter claimed their price had increased by an average of £78.
While this remains the case, shopping around at the point of renewal meant that the average motorist saved £71 last quarter.
The new research also noted clear differences in price depending on the location. Drivers in Manchester, Merseyside and Inner London are now paying 19 per cent less for their insurance compared to the same time last year.
However, drivers in Outer London and the West Midlands are paying upwards of £1,000, although this remains more than £200 cheaper compared to last year.
Experts have encouraged drivers to make sure they are checking their mileage and increasing the security of their vehicles to cut down on their car insurance costs in the future.
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Experts have urged motorists to shop around for cheaper car insurance prices
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Jones concluded: “Ultimately, the only way to know you’re getting the best price is to shop around. The price of car insurance is cheaper now than before, but many people aren’t getting the same savings when it comes to their renewal price.
“Even if your renewal price seems fair, there’s a chance that there’s another insurer out there willing to offer you a better price.
“In fact, last quarter, those who switched insurers were able to save £71, on average. So before you commit, shop and compare to make sure you’re getting the best deal.”
