Car insurance premiums have fallen by £217 in the last two years, according to new research from Compare the Market published earlier this week. Average premiums dropped to £593 in June 2026, compared to £636 in June 2025.
Significant decrease since 2024
It said this "pales in comparison to the fall since June 2024", when premiums were £810 - marking a total decrease in price of 26% in the two-year period. Despite the fall in car insurance premiums in the last two years, they are still marginally elevated on the two-year low of £589 seen in January 2026.
It said all age ranges had benefited from falling premiums over the past two years. The largest decrease has been experienced by those aged under 24, with the average premium falling by £494 – the equivalent of a 27% decrease.
Age and regional variations
Premiums have declined across all age ranges, with 25 to 34 year olds seeing a 22% decrease. The smallest fall has been for those drivers aged 80+, with premiums falling by £100, from £645 to £545 since June 2024.
Compare the Market said that, despite the significant fall, drivers aged under 24 continued to pay significantly higher premiums than other age groups, reaching an average of £1,314. This is almost 300% more than 65 to 79 year olds, who pay the least, at £338 on average.
In the UK, the largest decreases in car premiums between 2024 and 2026 were seen in London (31%), the North West (31%) and East Anglia (28%). Interestingly, compared to every other region, Northern Ireland actually saw car insurance prices rise by 2% over the last two years, with the average price now standing at £760.
Advice for drivers
In June 2026, despite the significant fall, Londoners were still paying the highest premiums on their car insurance, at £962, with those in Greater London (£912) and Northern Ireland (£760) also paying large amounts compared to other regions. In fact, those in London face prices more than 106% more than those paid by drivers in the South West of England, who receive the lowest price on average at £469.
Drivers looking to make the most of continued falling premiums should consider shopping around for a cheaper deal when their policy approaches its renewal date, Compare the Market said, with savings of up to £485 to be found on its site.
Sam Wilson from Compare the Market said: “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.
"However, recent inflationary pressures mean prices have started to creep back up, so drivers shouldn't assume costs will keep falling. Younger drivers and those living in London have seen some of the biggest improvements, but they still remain significantly higher than for other groups, continuing to highlight that affordability is still a challenge for many drivers."
"Despite premiums sitting at a lower level than they have been for the last two years, it is still a good idea for drivers to be proactive when it comes to renewal."
"Taking a few minutes to compare policies through comparison sites could help drivers find better value cover and reduce the overall cost of motoring.”
