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Motorists save £99 as car insurance prices fall 14.6%

The cost of car insurance falls by 14.6%, bringing the annual cost of cover down to £579 - saving motorists £99 compared with a year ago.

There's good news for motorists: the average cost of comprehensive car insurance has fallen to £579 - down from £678 this time last year.

This means the cost of an annual comprehensive car insurance policy has fallen by 14.6% in the past 12 months.

This is according to the latest quarterly car insurance price index.

The index analysed more than 4 million quotes from between April and June this year to reflect what prices drivers have been paying for cover.

Car insurance price falls 

Gemma Stanbury, head of car insurance at, welcomed the fall in car insurance prices as "positive news for motorists".

"This time three years ago motorists were left facing some of the highest average insurance premiums on record, when prices peaked at £858.

"Today, average prices are now nearly a third cheaper than in 2011."

Drivers urged to shop around for cover 

But Stanbury warned that car insurance prices are unlikely to keep falling.

"We've seen prices fall continuously over the last couple of years, so motorists should not necessarily expect prices to continue dropping at this rate.

"We're urging consumers not to just accept their renewal price as their current insurer may no longer be the cheapest option for them. 

"Insurance prices are specific to the individual and are constantly changing, so when you get a renewal price don't assume that the insurer you chose last year is necessarily still offering you the best price this year. 

"Now is the time to shop around online and check that you’re getting the best deal."

Why are prices falling?

Drivers of all ages are reaping the rewards of cheaper car cover but young drivers have seen the biggest fall in prices.

Industry experts are attributing this in part to a rise in the number of drivers taking out telematics or black-box car insurance policies.

With these policies, a small black box about the size of a packet of playing cards is fitted to your car to monitor driving behaviour such as acceleration and braking.

This information is then fed back to your insurer.

By demonstrating responsible driving, customers can prove to insurers they present a low risk, and their premium - the cost of cover - is adjusted accordingly.

Telematics policies are particularly aimed at young drivers who typically have higher car insurance prices due to their higher risk of accidents and their lack of proven driving experience.

'Young drivers benefit'

Woman taking drive with boyfriendStanbury says: "Younger drivers are the real winners, with 17-year-olds seeing comprehensive car insurance premiums fall by nearly half over the last three years, down 46% from £3,729 to £1,997."

Stephen Jones of insurance analysts Towers Watson adds: "What it shows in particular is that the UK motor market is still competing and innovating hard in the younger driver segment."

Jones says it will be interesting to see the effect of government crackdowns on insurance repair costs and whiplash on car insurance prices in future.

"The publication of reports by both the Competition and Markets Authority on insurance repair costs and by the Transport Select Committee on whiplash and small claims have come too late to have much, if any, effect on this latest quarter.

"But it will be interesting to see if the proposals they contained influence insurers' actions over the next quarter."

Three top tips for cheaper car insurance

1. Your choice of car

Your car's value, type and engine size all make a difference to your insurance premium. The general rule is, the smaller the car, the lower the premium. If you haven't bought a car yet, check quotes for the vehicles you're considering.’s QuickQuote app can help.

2. Increase your voluntary excess

The excess is the first part of a claim that is paid by you. Increasing the amount you'll pay in voluntary excess can lower your premiums.

3. Check your mileage

The number of miles you drive each year could have a big impact on your premiums. If you are unsure of the number of miles you drive each year, you can get an estimate by comparing the mileage on your last two years' MOT certificates.

What do you think?

Have your car insurance costs gone down?

We want to hear from you! You can share your thoughts on the message board below.

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Naphtalia Loderick

Naphtalia Loderick

Naphtalia Loderick covers all things consumer for She started out on a weekly newspaper, via a national news agency and a stint in the fun but ‘not as glamorous as it appears on screen’ world of TV at the BBC researching consumer films for The One Show.

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