The average cost of car insurance premiums has dropped to £729, making it the cheapest monthly average since May 2023.
That’s a fall of £221 since December 2023, when figures were averaging £950, according to data from Compare the Market.
The comparison site says these are the lowest figures in 19 months when prices were averaging £718. The drop may be partly attributed to the stabilisation in the cost of claims for insurers as inflation slowed in recent months.
However, the average premium is still £105 more expensive than December 2022’s figure of £624.
People under the age of 25 saw the largest reduction to their premium costs with an average drop of £425, with average annual premiums for this age group standing at £1,577. Those aged over 80 saw the smallest drop at £61 to an annual sum of £627.
Julie Daniels, motor insurance expert at Compare the Market, said: “Many motorists will be delighted that the cost of car insurance has declined significantly compared to last year. As household budgets experience wider pressures, cheaper car insurance will be welcome news following the steep insurance increases in recent years.”
Furthermore, the data found that insurance can differ depending on the area you live in. London drivers see the biggest fall by £370 year-on-year – but it’s still an average of £1,202. Drivers in Wales saw the smallest decline at £62, with the average premium being £620.
