Millions of drivers could see their car insurance costs fall in the coming months as average prices drop for almost all aged motorists.
According to new data, drivers across the UK are paying "considerably less" for their car insurance than they were a few years ago, with the youngest motorists seeing the biggest savings.
The average cost of car insurance is now just £777, a stunning drop of £164 compared to last March, with many hoping to see the cost of cover continue to fall.
While the youngest drivers, namely those aged between 17 and 20, are still paying an average of £2,151, although this is a drop of around 23 per cent year-on-year.
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The average price of car insurance has fallen dramatically in the last year
GETTY
Despite the optimism around falling prices, in the last three months, 50 per cent of drivers received a more expensive renewal price of around £81.
Prices are dropping for those buying new policies, with motorists urged to shop around when they look to get new cover, as they could save an average of £77.
Rhydian Jones, motoring expert at Confused.com, comments, "We're starting to see a consistent trend of prices decreasing, and this is great news for drivers.
"This could be because insurers are paying out fewer claims than before. Paying out on less claims means more savings to pass on to customers.
"But this doesn’t mean that prices won’t start to increase again in the future, especially if claims start to increase."
Historically, 18-year-olds are charged the most for their car insurance, paying an average of £2,434. Even though this is triple what many older drivers are paying, it represents the lowest price for drivers of this age in almost two years.
Average car insurance premiums finally fall below £2,000 for 20-year-olds, who have seen prices drop by £543 (22 per cent) since March last year, down to £1,943.
Reasons for motor insurance prices dropping can include fewer claims being made and improving vehicle safety technology, which has helped reduce as many accidents.
Younger motorists have also seen their car insurance prices fall as a result of using telematics devices, like black boxes, and other safety measures to keep themselves safer.
These devices monitor their driving ability and their habits, allowing them to receive a more accurate price for their insurance. With the savings that telematics devices bring, more motorists are willing to use them to keep costs down.
Jones added: "You'll often see a better price if you shop around at renewal time. Even if your renewal price from your insurer is cheaper than last year, it's likely there will be another insurer out there offering a better price.
"Doing this ahead of time can save you even more too. Our data shows that if you shop around about three weeks before your policy is due to renew, you could benefit from the biggest savings."
LATEST DEVELOPMENTS:
The youngest drivers on the road are still paying more than £2,000 for their car insurance
GETTYOlder drivers aged over 55 are now paying less than £600 for their insurance, while 32-year-olds have seen £220 drop to a new average of £981.
Britons can save even more money by improving the security in their vehicles with measures including steering locks, or even parking in safer, well-lit areas.
