British motorists are seeing the biggest drop in insurance premium prices in six years, according to new data.
During the past 12 months, the average cost of insurance fell by £87 (or 14 per cent), with the average driver now paying £538 to insure their car for the year, according to data from Confused.com’s Car Insurance Price Index.
Men were those most likely to see the biggest reductions, with premiums falling by £91, compared to £82 for women.
Meanwhile those in their early 20s were the most likely to get the biggest savings, with a £141 fall in prices in the past three months, though those aged 69 – the age group with the lowest prices – also saw a £67 drop, year-on-year.
This drop predominantly stems from the huge decrease in annual mileages during the pandemic, which fell from an average of 7,239 miles to 4,113 – a 43 per cent fall.
Despite falling prices over the past year, though, the data shows that prices could be on the up again, with the firm’s data showing premiums increased by £45 in the past three months.
Louise O’Shea, CEO at Confused.com, said: “It’s been just over a year since we went into lockdown for the first time and this triggered a lot of changes in how we’re using our cars. This is a change that could be here to stay for the foreseeable future, so it only seems right that our car insurance costs are cheaper to reflect this.
“What we are seeing is the biggest drop in prices in almost six years. But it’s important to remember that these lower prices are only benefiting those who shop around. It’s clear from our research that automatically renewing could in fact cost you more money.”
This research was generated from more than six million quotes being carried out on the comparison site.
April 20, 2021