The cost of car insurance has fallen by £72 (-8%) year-on-year, according to new Premium Drivers research from Compare the Market.
The average premium declined to £776 in September 2024, compared to £848 in September 2023. August 2024 and September 2024 were the first months where car insurance premiums have been cheaper than the same period in the previous year since June 2022 – 26 months ago. The drop in the cost of motor insurance may in part be due to a stabilization in the cost of claims for insurers as inflation has slowed in recent months.
As a result of the decline, the cost of car insurance is, on average, £175 cheaper than in November 2023 when the average premium peaked at £95.
Motorists aged 80 and above have seen a smaller fall in the cost of car insurance compared to other age groups. The average premium for these older drivers has only declined by £8 year-on-year to £637 in September 2024. Young drivers, aged under 25, have seen the largest drop in average premiums as the cost of car insurance has fallen by £107 year-on-year to £1,786.
Given these falling premium prices, drivers who shop around first ahead of renewing with their existing provider could find some great deals. Even if your renewal price drops, one of the best ways to try and save money on your car insurance is to compare online first. Motorists could save up to £461 on their car insurance through Compare the Market.
Julie Daniels, Motor Insurance Expert at Compare the Market, said, “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.”
