Motorists now pay an average of £713 for their car insurance, according to data from Confused.com, with costs remaining stable over the past 12 months.
The findings are based on more than six million quotes for comprehensive new business car insurance policies. The average premium has fallen by £22, standing 17% lower than it was two years ago, which could be welcome news as fuel prices continue to spiral.
Best time to buy and young driver savings
Additional data found motorists could benefit from running a quote 28 days before their renewal date to secure the best price for a new policy, with savings of up to 53% compared with buying a policy on the final day of their current cover.
Young drivers in particular are seeing the biggest year-on-year savings, according to the car insurance price index by Confused.com, powered by WTW. Those aged 17 are now paying £1,755 on average, £253 (13%) less than a year ago. Similarly, 18-year-olds are paying £259 (11%) less than a year ago, with their average premium now £2,083 - the highest of any age group.
Older drivers and regional differences
The data also shows older drivers have seen premiums rise, with 70-year-olds now paying £20 (5%) more than a year ago and spending an average of £411 annually. Regionally, Inner London remains the most expensive area in the UK, with motorists paying an average of £1,079. Prices in Northern Ireland have risen significantly, increasing by £209 (25%) year on year, with the average premium now £1,059.
Further research by the brand among 2,000 drivers found half (51%) have seen their renewal premium increase in the past three months. A year ago, car insurance premiums averaged £735, meaning drivers who accepted their renewal price could now be paying more than £800, around £90 more than the average premium paid today.
Benefits of shopping around
The research found shopping around can save motorists a significant amount, with those who switched providers saving £80 on average. Matt Crole-Rees, motoring expert for car insurance at Confused.com, said: “When you receive your car insurance renewal price, it’s easy to think that’s the best price you're getting. But that’s not necessarily the case.
“It’s also worth remembering your circumstances can change from year to year. You may need a different level of cover or want to update some details, and this won’t be reflected in the renewal price you receive.”
He added: “Shopping around early is key and could save you 53% compared with buying a policy on the day your current cover renews. And if someone else can occasionally use your car, adding them as a named driver may not only provide greater flexibility but could help reduce your premium too.”
Tips to get the best deal
Be honest about your mileage. Under-declaring mileage to secure a cheaper price can invalidate your policy, while overestimating it could mean paying more than needed. Share the driving: if you live with a partner, parent or child who could use your car, consider adding them to the policy. Data shows sole drivers pay an average of £806, compared with £691 for those with an additional named driver.
The harder your car is to steal, the lower the risk it represents to insurers. While most cars come with an immobiliser and alarm as standard, adding security devices such as a steering wheel lock or tracker could help reduce costs. It's also worth considering where your car is parked, particularly overnight.
