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Car insurance premiums now 11% cheaper: are your costs going down?

Younger drivers see biggest decrease in car insurance premiums

The average price of car insurance has fallen by 11% over the past year, a decrease of £95, according to the latest Confused.com car insurance price index. But are drivers saving money?

Despite the new lows, 62% of drivers said that their car insurance premium increased when it came time to renew.

We take a look at what the latest decrease in the cost of car insurance means for you and how to find the best deal.


Cheap car insurance by region

On average, UK drivers are paying £752 for their car insurance, down form £847 this time last year.

Motorists in Northern Ireland saw the greatest percentage decrease with car insurance premiums falling 16% – around £165 cheaper than last year.

While London residents are still the only drivers in the nation who can expect to pay over £1,000 a year for car insurance, their average premium drop by 13% – £179 less than last year.

Search the table below to find out the average premium in your region.

Cheap car insurance by age group

Younger drivers, aged 17, saw the biggest fall in their car insurance premiums – which dropped £403 on average compared to last year.

Yet many teenagers still have to foot a hefty bill.  Motorists aged 17 are still paying a whopping £1,889 a year for car insurance, while 18 and 19 year olds pay £2,052 and £1,893 a year respectively.

Search the table below to find out the how the average car insurance premium has changed by age.

Why have car insurance prices decreased

The fall in car insurance is largely due to the Discount Rate (or Ogden Rate), which determines how much your insurance company has to pay in compensation for personal injury claims.

In March this year, the government dropped the rate to 0.75%, which meant that insurers had to pay out more compensation for personal injury claims.

Initially, this caused a huge spike in the cost of car insurance in the UK. But as insurers begin to recover from the shock, premiums seem to be falling too, according to Confused.com.

 

Expensive car insurance renewals

Depsite the the recent fall in car insurance prices, customers may still be stung with higher fees when they receive their renewal notices. As such, it pays to shop around to try to find a better deal.

 

Overall, 58% of driver stayed with the same insurer last year, rather than looking for a lower price from a competitor.

According to Confused.com, there’s a 21 day ‘sweet spot’ for drivers to renew their policy, which could see them receive the best price when renewal time comes.

The average car insurance for drivers shopping around 21 days before they’re due to receive their renewal notice is £651.

Drivers who waited until the day they received their renewal notice to shop around paid £1,264 – almost double the premium.

Finding the best car insurance deal

Whether you’re getting your first policy or looking to renew, shopping around can help you save hundreds of pounds on your car insurance policy.

Don’t just go for the cheapest policy though – make sure that you read the terms and conditions first to make sure that you get the right level of cover.

The time of year you buy car insurance can have a big impact on the price you pay too.

Research shows that February is the cheapest month for car insurance while December is the most expensive month for car insurance.

Another thing to bear in mind when looking at policies is the quality of customer service, which can make all the difference when it comes to making a claim or getting your queries resolved.

To give you a hand finding the best insurer, we’ve combine Which? expert we’ve analysed over 30 standard car insurance policies along with feedback from thousands of policyholders to produce independent car insurance reviews. 

You can also find more useful tips in our car insurance advice guide and the short video below.

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