Drivers see massive car insurance price drop for first time in years - 'Respite we've all been waiting for'
Drivers are being urged to shop around to ensure they save on their car insurance costs
GETTY
Drivers can rejoice as new data shows how car insurance premiums have fallen annually for the first time in almost three years, as motorists now pay £63 less than this time last year.
The new data shows that the average car insurance cost is now £861, with Britons seeing a seven per cent price drop compared to October 2023, on average.
Prices are dropping annually, although two-thirds of motorists reported receiving a higher renewal price last quarter, costing around £84 on average.
The overall price drop in car insurance costs will come as relief for British motorists, many of which have dealt with enormous costs in recent years.
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Car insurance rates have soared since the outbreak of the pandemic
GETTYWhile many will still be seeing far higher costs than pre-pandemic levels, a trend of falling prices will be welcomed, especially by those who have been issued quotes costing more than £1,000.
The research, from Confused.com, notes that people living in major cities and younger motorists are still bearing the brunt of the most expensive costs.
Although prices have fallen by 10 per cent in the last year, drivers in Inner London are still expected to pay £1,357, followed by Outer London (£1,104) and the West Midlands (£1,068).
Experts have continually called on drivers to take matters into their own hands and shop around when renewing their car insurance costs, as they could save hundreds of pounds in some instances.
A survey found that two in five drivers who had a higher renewal quote from their insurer shopped around instead and switched insurers - saving them on average £81.
Commenting on the research, Rhydian Jones, motoring expert at Confused.com car insurance, said: "After a long period of seeing their car insurance increase, the news of prices starting to come down will be a relief to drivers. It’s the respite we’ve all been waiting for.
"However, prices are still a lot higher than they have been historically. Many of us will still be paying more than we have in the past, despite gaining more driving experience or building up our no-claims bonus."
Analysis of other car insurance quotes found that drivers who take out a policy 18 days before their renewal date paid 48 per cent less than those who bought the day their renewal was due.
Some motorists will still be aggrieved as they fork out thousands of pounds to keep their cars road legal, with 18-year-olds paying £2,886 on average, while 20-year-olds are paying £2,200.
Despite this, 23-year-olds saw the biggest drop in prices, with a nine per cent fall compared to 12 months ago, and prices now nine per cent cheaper.
Jones called on motorists to ensure they are taking every opportunity to cut their costs, including by sharing their car with a more experienced driver.
Moving their cars to a more secure location can also help motorists save on their insurance. Adding more security to where they park or to their vehicle can also cut costs.
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Experts have called on motorists to improve their security to save their car insurance
PEXELSHowever, Jones did warn motorists that they could still see fluctuations in prices, adding: "There’s no guarantee that prices will continue to fall, especially as insurers continue to face the challenge of rising claims cost due to inflation.
"So taking steps to make sure you’re getting the best price is still as important as ever."
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