Life

Average cost of car insurance falls by £72 year-on-year

Modest decline means an average premium now stands at £776.

EMBARGOED TO 0001 WEDNESDAY OCTOBER 09 File photo dated 23/12/23 of slow moving traffic on the M42 close to Birmingham, as drivers have rated the M42 as England’s worst motorway thanks to it having reduced speed limits “for no apparent reason” and the combination of “roadworks, potholes and delays”. The 40-mile-long motorway, which connects Birmingham with locations including Nottingham, Solihull, Tamworth and Redditch, was ranked last in a survey of more than 9,166 road users conducted by watchdog Transport Focus. Issue date: Wednesday October 9, 2024.
M42 ranked England’s worst motorway EMBARGOED TO 0001 WEDNESDAY OCTOBER 09 File photo dated 23/12/23 of slow moving traffic on the M42 close to Birmingham, as drivers have rated the M42 as England’s worst motorway thanks to it having reduced speed limits “for no apparent reason” and the combination of “roadworks, potholes and delays”. The 40-mile-long motorway, which connects Birmingham with locations including Nottingham, Solihull, Tamworth and Redditch, was ranked last in a survey of more than 9,166 road users conducted by watchdog Transport Focus. Issue date: Wednesday October 9, 2024. (Jacob King/PA)
By Jack Evans, PA Motoring Reporter

The average cost of car insurance now stands at £776 following the first yearly fall in average car insurance premiums since June 2022.

The average cost of car insurance has fallen by £175 since it hit a peak of £951 in November 2023, though premiums have increased by £14 between August and September, according to data from Compare the Market.

August and September of this year were, however, the first months where car insurance has been cheaper than the same period in the previous year since June 2022. The comparison site says that the fall may be ‘in part’ due to a ‘stabilisation in the cost of claims for insurers as inflation has slowed in recent months’.

Those aged 80 and above have seen a smaller fall in their car insurance premiums than any other age group – with premiums dropping by just £8 – whereas those under the age of 25 have seen insurance costs fall the most, coming down by £107 year-on-year – albeit to £1,786 annually.

Julie Daniels, motor Insurance expert at Compare the Market, comments: “Many motorists will be thrilled that the cost of car insurance is starting to fall compared to last year. This is great news following a period of increasingly steep prices.

“One specific tip I’d give to drivers who want to save money on their car insurance is it’s still important to compare prices and providers online first before renewing with your existing provider. Whilst some drivers might see their renewal price drop, by taking that action to shop around, you’ll see how much you could save by switching.”