Car insurance premiums have fallen by more than a quarter over the past two years, with the average policy now costing £217 less than in June 2024, according to new data from Compare the Market.
The average premium in June stood at £593, down from £810 in June 2024 – a decrease of 26%. Prices are also lower than they were last June, when the average premium was £636.
Regional and age variations
London and North West England have seen the largest reductions, with premiums falling by 31% over the past two years. East Anglia saw premiums drop by 28%, from £774 to £552, while nearly every part of the UK has witnessed a decline in insurance costs since June 2024.
Drivers aged between 65 and 79 pay an average of just £338. Motorists aged over 80 saw the smallest cash reduction, with their average premium falling by £100 to £545.
Younger drivers see bigger savings
Drivers aged between 16 and 24 are paying £494 less on average than they were two years ago, representing a 27% fall. However, younger drivers still have by far the highest insurance bills, with the average premium standing at £1,314.
Sam Wilson, insurance expert at Compare the Market, stated: "Our research shows that motorists comparing quotes through Compare the Market are seeing lower insurance costs than they were two years ago."
"Premiums have fallen significantly over that period, with many drivers now paying close to some of the lowest prices we've seen in over two years."
Future outlook and advice
However, Mr Wilson cautioned that prices could begin to climb again due to recent inflationary pressures, "so drivers shouldn't assume costs will keep falling".
Motorists hoping to capitalise on the ongoing drop in premiums should consider searching for a more affordable deal when their policy is up for renewal.
The less likely you are to make a claim, the cheaper your premium is likely to be. Check your car's insurance group before purchasing, as some are pricier to insure than others.
