Car Insurance Prices Are Falling - Are You Getting The Best Deal?

Mon 16th Apr 2018

Car insurance prices have fallen for the first time since 2014 according to comparison website, with average premium in 2018 2% cheaper than it was four years ago.

Reforms to whiplash payouts and changes to compensation to victims of accidents have contributed to the drop, with government legislation leading to a drop in the prices.

Male drivers aged between 17 to 20 are paying the most for their insurance, average premiums in that bracket levelling out at £2,348. At the other end of the spectrum the cheapest insurance is paid by female drivers aged between 61 and 65 at just £363 a year.

Despite the drop in average prices in 2018, many drivers are still paying more for their car insurance year on year, with figures suggesting that British drivers are paying a ‘loyalty tax’ of £45 each year for not shopping around on their premium.

"Finally drivers have had some good news with the end of rising car insurance costs in sight,” said Louise O’Shea from

"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."

Drivers are encouraged to always check out the prices of other insurers to secure the best deals. Check out price comparison websites and also go to insurers individually for the best offers.

Ensure that you give the insurer your correct details. Giving the wrong job title, or incorrect yearly mileage can significantly impact your premium quote, with some drivers being penalised for suggesting they are unemployed when they are actually studying.

Surprisingly it works out cheaper to go fully-comp, purely because some insurers see third party policies associated with higher-risk drivers. Also, if you are a high-risk driver then you can drive the cost of your insurance down by adding a second driver who has fewer penalties.

Finally, if you want the best deal, it is always wise, if affordable, to pay up front, and avoid the monthly interest on your payments.