Car Insurance Premiums Fall for the First Time in Nearly Three Years, Reports Confused.com

For the first time since 2021, car insurance premiums in the UK have dropped, offering drivers a welcome financial break. According to Confused.com’s latest Car Insurance Price Index, powered by WTW, the average premium has decreased by £63 (7%) over the past 12 months, bringing the typical cost down to £861. This marks a significant shift, as prices have been on the rise for nearly three years.

Additionally, premiums have fallen by £21 (2%) over the last three months, further contributing to the downward trend. However, while these decreases provide relief, many drivers are still paying more than in the past due to recent years of inflationary pressure.

Regional Price Variations

Car insurance prices have dropped across all UK regions, but the biggest reductions were seen in Inner London, where drivers saved £146 (10%) on average. Despite this, London remains the most expensive region for car insurance, with drivers in Inner London paying an average of £1,357. Outer London and the West Midlands follow, with premiums of £1,104 and £1,068, respectively.

Age Matters: Young Drivers Still Pay the Most

While most age groups benefitted from lower premiums, drivers aged 17 saw their costs rise by £114 (4%) over the past year. On average, 17-year-olds now pay £2,727 for their car insurance, making them the only age group facing increased premiums. Drivers aged 17 to 20 generally face the highest premiums, exceeding £2,000 on average.

Gender Differences in Insurance Costs

Although insurers cannot price based on gender, men typically pay more for car insurance than women. The report shows that male drivers experienced a £67 (7%) drop in premiums, bringing their average to £920. Female drivers also saw a decrease, paying £762 on average following a £58 (7%) reduction. Men are more likely to drive higher-risk vehicles, which contributes to their higher insurance costs.

A Word from Rhydian Jones, Confused.com Commercial Director

Rhydian Jones, Commercial Director at Confused.com, commented on the findings:

“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. This is why it’s so important to keep shopping around and to make changes to our driving habits if we can. We could also change how we use our cars to see if we could bring our price down even further.”

Conclusion

Although prices are finally falling, many drivers are still paying more than they have in previous years. The latest Car Insurance Price Index emphasizes the importance of shopping around to find the best deals and adjusting driving habits to save even more.

For more detailed insights and to access the full report, visit Confused.com.