The average cost of car insurance now stands at £776 following the first yearly fall in average car insurance premiums since June 2022.
The average cost of car insurance has fallen by £175 since it hit a peak of £951 in November 2023, though premiums have increased by £14 between August and September, according to data from Compare the Market.
Those aged 80 and above have seen a smaller fall in their car insurance premiums than any other age group – with premiums dropping by just £8 – whereas those under the age of 25 have seen insurance costs fall the most, coming down by £107 year-on-year – albeit to £1,786 annually.
“One specific tip I’d give to drivers who want to save money on their car insurance is it’s still important to compare prices and providers online first before renewing with your existing provider. Whilst some drivers might see their renewal price drop, by taking that action to shop around, you’ll see how much you could save by switching.”
