Car insurance prices plummet by record amounts with almost £1,000 slashed off premiums

The significant decrease comes as welcome relief for motorists aged between 17 and 24, who continue to face the highest premiums of all age groups.

But despite the recent drop, premiums for young drivers still remain 73 per cent higher than at the start of 2023, experts warned.

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Young Londoners face the steepest insurance costs, paying an average of £3,229 annually - nearly double the amount paid by their counterparts in southwest England.

The stark regional disparity means young drivers in London pay £1,441 more than those in the southwest, where premiums average £1,788.

In the capital, young motorists have been hit particularly hard, paying 273 per cent more than drivers aged 45 to 64 in the same area. Drivers in Northern Ireland are paying £238 less than the UK average.

The West Midlands and northwest England also rank among the most expensive regions, with young drivers facing annual premiums of £2,625 and £2,589 respectively.

Ian Wilson, managing director at Tiger.co.uk, said: "It is good news for drivers of all ages that the average cost of car insurance has fallen to £769 in the last quarter of 2024. This represents an average saving of £116 when compared to the same period in 2023.

"This is especially concerning for young motorists in areas like London, the West Midlands and northwest, where insurance costs are the most expensive."

He highlighted how young drivers face multiple financial hurdles beyond insurance costs with barriers in place on the road, including costs associated with learning to drive, paying car tax and buying the vehicle itself.

To help reduce the price of car insurance, the group outlined several key strategies to slash costs for young drivers including parking in a secure location like a garage or driveway overnight.

Installing a telematics or black box device allows insurers to monitor driving habits and reward safe behaviour with reduced costs. The box records the speed and travel movements of the vehicle which can be used to set lower premiums.

Adding an experienced driver to the policy can also result in savings of over £350, with female family members typically providing greater reductions than male relatives, the expert shared.

The comparison site found the gender difference stems from male drivers being statistically more likely to have motoring convictions and make costly claims than females.

Experts also stress the importance of shopping around rather than allowing policies to auto-renew, encouraging drivers to compare prices annually.

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Wilson added: "It's important to raise awareness of the most surprising factors drivers might not be aware of to help keep their costs down. It’s also crucial to make sure drivers are being quoted correctly for the policy they need and against accurate factors such as their car use and mileage."

He explained that there are many factors that can “inflate and even invalidate” an insurance policy if the details are inaccurate.

"In order to help keep costs as low as possible and ensure drivers are fully covered if anything were to go wrong - it is important to keep the provider updated and review our tips for areas where savings can be found, such as looking at the day and time to make a purchase," he warned.