Average motor premiums down 17% in a year
Average motor premiums in March were recorded at £777, which is 17% lower than the same month in 2024.
According to the latest Confused.com car insurance price index, this fall represents the biggest annual decrease in a decade.
Meanwhile, prices have fallen by seven per cent, or £57, since the start of the year.
The biggest decreases were seen in Inner London – down 20% in a year – although average premiums remain the highest in the country at £1,208. Average premiums in Outer London were recorded at £996 and £943 in West Midlands.
For 18-year-old drivers, average prices were £711 lower this March than a year ago, but still extortionate at £2,434. For 17-year-olds, the average premium has fallen £611 to £2,258.
Downward trend
Rhydian Jones, commercial director and motoring expert, said: “We’re starting to see a consistent trend of prices decreasing, and this is great news for drivers. This could be because insurers are paying out fewer claims than before. Paying out on less claims means more savings to pass on to customers. But this doesn’t mean that prices won’t start to increase again in the future, especially if claims start to increase.
“In particular, younger drivers are seeing the biggest savings when shopping around. Just over 12 months ago, prices increased by as much as 98% for some. So these latest drops could be great for young drivers buying insurance.
“It’s interesting to see that young drivers have been shopping around for their insurance, with more drivers looking to buy telematics, or basic level policies. These could work out as a cheaper option, so we’d always encourage younger drivers to compare different policy types to see what works best for them.”
