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Video: 12.5% fall in car insurance costs

Car insurance costs fell 12.5 per cent in the last three months of 2013, compared with the previous year.

Gemma Stanbury, head of car insurance at Confused.com, explains why.

Confused.com car insurance price index

The quarterly Confused.com car insurance price index looks at more than four million quotes to reflect what prices drivers have been paying for cover.

This latest index looks at car insurance prices between October and December 2013 inclusive.

The 12.5 per cent fall means the average annual cost of a comprehensive car insurance policy now stands at £644 - down from £735 this time last year.

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