Car insurance prices at lowest point in more than 2 years

• Drivers in the UK can now expect to pay an average of £757 for their car insurance.
• However further research¹ reveals renewing customers are facing price increases. Nearly half (49%) claim their annual renewal price increased by £79, on average.
• Meanwhile 17-year-olds are seeing the biggest drop in prices in more than 10 years. They now pay £775 (-27%) less compared to last year.
• Drivers in Manchester & Merseyside, and the West Midlands have seen an 18% drop in their car insurance costs - £192 and £201 respectively, on average.
• How much could you pay for your car insurance if you shop around? Confused.com car insurance calculator shares the most recent prices for drivers based on their age, gender, and where they live.

Car insurance prices in the UK are at their lowest in more than 2 years, new data reveals.

This means UK drivers can now expect to pay an average of £757 for their car insurance. This is a £144 (-16%) drop compared to 12 months ago.

This marks almost 18 months of falling car insurance prices. In the past 3 months alone, prices have dropped by a further £20 (-3%).

That’s according to the latest car insurance price index by Confused.com, powered by WTW. Based on more than 6 million quotes, it’s the most comprehensive car insurance price index for new insurance policies in the UK.

But, further research shows not all drivers are seeing these savings at renewal - especially those staying with the same insurer. That’s as almost half of UK drivers¹ (49%) claim their renewal price has increased in the past 12 months.

Those who faced higher renewal prices said they were asked to pay £79 more than last year, on average. Meanwhile those who were offered a cheaper renewal price said it was only £57 cheaper compared to the year before.

When compared with the potential £144 difference drivers could now see if they shop around, it’s clear opting to take their renewal price - even if it’s cheaper than the year before - could still mean missing out on bigger savings.

While prices may still seem high for many drivers, they have dropped significantly over the past 18 months. At the end of 2023, the average premium was £995 - the highest recorded by the Confused.com car insurance price index. This means prices have fallen by £238 in just 18 months.

In particular, younger drivers are benefitting from the greatest savings.That’s as 17-year-olds are now paying £775 (-27%) less than 12 months ago. This is the biggest yearly drop for this age group in more than a decade.

Similarly, 18-year-olds are seeing savings of £697 (-23%) over the same period. Still, despite these significant savings, these age groups are still paying the most for their car insurance - averaging £2,051 and £2,329 respectively.

And it’s not just younger drivers who are seeing a significant shift in their prices. 46-year-olds have also seen prices drop by £154 (-18%). This brings the average price for drivers of this age to £688.

Biggest savings by age group

Meanwhile, a drop in prices means 31-year-old drivers are paying less than £1,000 for the first time since early 2023. The average cost of insurance for drivers of this age is now £992 - a £180 (-15%) decrease compared to 12 months ago.

All age groups are benefitting from lower car insurance prices when shopping around - and the savings are significant. For example, 49-year-olds have seen the smallest decrease over the past 12 months. But it’s still 12%, or £87, compared to the average price this time last year. This means drivers of this age are now paying £664 for their car insurance.

It’s a similar picture for drivers in different regions of the UK, with some seeing bigger savings than others when buying a new car insurance policy. Prices in both the West Midlands, and Manchester and Merseyside have dropped by an average of 18% in the past 12 months. In the West Midlands, this equates to a £201 saving, bringing the average premium in the region to £909. And in Manchester and Merseyside, drivers are now paying £192 less year-on-year, with the average price now £896.

Meanwhile, Northern Ireland has seen the smallest change in car insurance prices over the past 12 months. Drivers there are now paying £852, following a 9%, or £87, decrease in average premiums year-on-year.

Biggest savings by region

To help drivers understand what they might pay come renewal time, Confused.com has created a car insurance calculator, based on their age, gender, and region. While falling prices may come as good news to drivers, there’s still more they can do to make extra savings when it comes to shopping around. Confused.com experts offers these tips: Shop around early

While falling prices may come as good news to drivers, there’s still more they can do to make extra savings when it comes to shopping around. Confused.com experts offers these tips:

Shop around early

Research shows that most drivers shop around for their car insurance about 15 days on average before their renewal. But further data shows that the sweet spot to get the best price is around 3 weeks before renewal. So, getting a quote just that little more in advance could help you find a better deal.

Be accurate with your mileage

Trying to lower your premium by underestimating your mileage can actually cost more. For example, drivers who report 5,000 miles per year pay an average of £809, while those driving 10,000 miles are paying an average of £746.

Always be honest about your mileage when taking out insurance. If you exceed your annual mileage, you could risk invalidating your policy.

Consider sharing the driving

Adding a named driver to your policy, especially one with more experience, could help save money on your insurance. Data shows that those listed as the sole driver on their policy pay an average of £853 for car insurance. In comparison, those with an additional driver pay £735.

The savings can be even cheaper if the additional driver is a spouse, with average premiums dropping to £534, on average. So if you have the option to share the driving, it’s worth doing - it can lighten the driving load and save you money too.

However, if you’re adding a named driver to your policy, it’s important to ensure that the policy holder is the main driver of the car - not the named drivers. Having a named driver as the main driver is a form of insurance fraud, called fronting, and can carry serious consequences.

For more information on how to save money on car insurance visit: https://www.confused.com/car-insurance/guides/tips-for-cheaper-car-insurance

While car insurance prices are cheaper than they were last year, they are still considerably more expensive than they have been in the past 5 years. This means some drivers could be paying more than ever before. In fact, almost 1 in 3 (30%) UK drivers claim their current insurance is the most expensive it has ever been.

And it’s becoming a burden for many drivers. Over half (57%) say they’ve had to make a financial sacrifice to pay for their insurance. Further research also shows that 1 in 4 (25%) UK drivers have dipped into their savings, and almost 1 in 5 (18%) have had to cut back on personal spending.

Rhydian Jones, motoring expert at Confused.com comments, “Car insurance prices have been dropping for some time now - and this is great news for those who are due to renew soon. Our latest data shows that the cost of a new policy, on average, is £144 cheaper compared to last year. But some customers aren’t seeing the same savings in their renewal price from their insurer.

“When it comes to your renewal, your premium price might go down - or it might stay about the same. But as average prices drop, insurers can become more competitive, which means you could get a cheaper price elsewhere. It’s important not to just stick with a price because it looks good - you could be missing out on a lot of money.

“To get an idea of how much you could be paying, we’ve created a car insurance calculator, based on your age, gender, and where you live. Though it shouldn’t be taken as a final price, shopping around is the only way to see the cheapest options for you. Doing this around 3 weeks before your renewal is due could be the best time to get the lowest price.

“And don’t forget to review your details. Ensuring your mileage is accurate, or enhancing your vehicle’s security could also save you money on your insurance. And if you have the option to share the driving, adding a named driver can offer some savings too.

“Be savvy and prepared when it comes to your car insurance - it’s the best way to make sure you’re getting the best price at a time when any money back in your pocket is no doubt welcomed!”

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Notes to editors