Despite average premiums falling slightly over the last few years, car insurance is still represent a significant cost for most motorists. There is a little good news, however, as the average price paid by UK drivers has fallen slightly in the first quarter of 2015, following two quarters of price hikes.
The cost of insuring a car has dropped by 0.5 per cent over the last quarter, cutting the average premium paid by motorists for a fully comprehensive policy to £591, according to car insurance comparison site Confused.com. Though this drop only cuts a typical premium by £3 – with the annual rate now falling at £5 per year – it reverses price increases seen in five of the last seven months.
Ally falling premiums with fuel that is much cheaper than it was a year ago and the amount spent by motorists on running their cars has fallen dramatically. There is even better news for the youngest drivers on the roads with 17-year-olds benefitting from the least expensive premiums since the index started in 2006. This means that a typical 17-year-old would have to stump up ‘just’ £1,901 – a fall of £83 over the last quarter and £302 annually.
We would urge consumers to shop around and compare prices to ensure they get the best deal possible.
Meanwhile, 18-year-olds have seen a £207 reduction year on year, cutting their average premiums to £1,881. While those under 30 can expect falling premiums, those aged between 30 and 42 have seen an increase in insurance costs, with 37-year-olds seeing a four per cent price hike – equivalent to £18. Those in inner London, though, are stuck with the UK’s highest premiums, typically having to pay £957 for a year’s fully comprehensive cover.
This short term drop, however, may not signal a return to falling prices. Steve Sanders, finance director at Confused.com said: “While consumers will be pleased not to have seen any rises this quarter, they should prepare themselves for the possibility of a return to the gradual increases we have been experiencing in previous months, as seasonal pricing patterns balance out.”
"With that in mind, we would urge consumers to shop around and compare prices to ensure they get the best deal possible."
Picture: Monkey Business