For the first time in three years the average price of car insurance has fallen, a survey conducted by price comparison website Confused.com has found.
The research showed prices fell by 2 per cent, which equates to £13 and means the average price of insurance went down to £768 per year.
One of the main factors for this reduction was a review of the Ogden rate, which decides personal injury compensation, as well as reform over whiplash claims – which aimed to cut courts costs over whiplash court cases that amounted to £2 billion every year.
However, customers who stayed with the same insurer found that the cost of insurance went up by £45 and 59 per cent of people didn’t change their provider.
Despite this fall, prices still aren’t as low as they could be, as they would need to drop by a further £269 to reach the lowest level of recent times – an average of £499 was posted back in the second quarter of 2008.
Save money on a new car today
Louise O’Shea, chief executive officer at Confused.com, said: “Finally drivers have had some good news with the end of rising car insurance costs in sight.
“However, it’s clear that many motorists are not seeing these savings reflected in their renewal letters, so it’s more important than ever to shop around if they want to get a better deal.”
Confused.com also displayed that men pay £95 more on average than women, and not all age groups saw a drop in prices – as 21 year olds saw an increase of £38 and 68+ year olds had an average increase of £40.
