Car insurance prices fall up to £403 in the last year – but most drivers are still paying more than they have to
YOUNG motorists, aged just 17 years old, have saved over £400 on average for their car insurance compared to last year's Q2 figures.
British drivers have seen an overall drop in policy prices by 11 per cent, which equates to £95.
According to new data released by insurance comparison website Confused.com, UK drivers now pay £752 per year for their premium.
The gap is also slowly closing between male and female policy prices, with men paying £92 more compared to £95 in 2017's Q2.
That said, women aged between 61 and 65 are paying the least for their car insurance at around £356.
Premiums in London city have dropped by a whopping £179 compared to last year, although it remains the most expensive region for car insurance.
The price reduction is believed to be a result of changes made to the so-called Ogden Rate.
This is a calculation used to decide how much compensation is paid to victims with life-changing injuries after an accident. It is also known as the Discount Rate.
Another factor contributing to lower premiums is the increase of telematics - these come in the form of black boxes and smart phone apps that analyse driving habits.
Despite the savings to be had when switching, 58 per cent of Brits renew with their insurer.
Between April and June this year, for example, renewing customers saw an increase of £49 on average.
On the other hand, switching providers can save motorists up to £613, according to the new research.
The data also reveals that drivers who want to renew should do it 21 days before their policy ends.
Average costs at the time of this 'sweet spot' totalled £651 for an annual policy, whereas renewing on the same day as the insurer notifies you costs twice as much.
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Louise O’Shea, Confused.com CEO, said: “Drivers have experienced a rollercoaster when it comes to car insurance pricing.
"This is caused by insurers reacting to the changes in the Ogden rate, which is used to calculate the cost of some bodily injury claims.
"I’m very happy drivers are going to have a few more pounds in their pockets. However, often motorists don’t see these savings reflected in their renewal notices. Even when prices are coming down, we should all still shop around to get the best deal."