Car insurance prices have been on the way down for a full 12 months, the first time such a consistent fall has been seen in three years, new research has revealed. It means that the average cost of a motor insurance policy currently stands at £768, having fallen by £13 (two per cent) since the end of 2017’s first quarter. Prices fell particularly sharply in the first quarter of 2018, with premiums dropping by seven per cent.
Younger drivers have benefited most from the decreasing cost of insurance, with 17-year olds now paying £118 (-six per cent) less for cover than they did last year, and £201 (nine per cent) less than they would have paid three months ago. Insurance remains expensive for younger motorists, though, with 18-year olds paying an average of £2,114 per year.
The overall reduction in the cost of car insurance is said to be partly due to a forthcoming Government review of the discount rate, used to calculate insurance compensation payouts. A crackdown on fraudulent whiplash claims is also believed to be a factor in the fall.