Auto insurance prices fall for first time since 2014 amid whiplash crackdown

Car insurance

Car insurance

The average vehicle insurance policy is now £768 - up from a low of £499 in 2008.

Despite the falling prices, The Sun reports that 70% of motorists in Britain think their insurance premiums have increased over the past 12 months.

Drivers in the City of London benefited from the greatest quarterly fall of 21%, with East London now the most expensive location in the country for auto insurance, and Dorchester the cheapest.

"Insurers feel confident in calming their premiums, and our quotes data shows prices are down annually for the first time in three years", Confused.com head of data insight, Steve Fletcher, said. It said prices peaked in the last quarter of 2017 but have since fallen 7%. The sum is around £13 cheaper than the same period past year. But some 59% of drivers stuck with the same insurer and saw their premiums rise by £45 on average. Although insurers can't set premiums based on gender, women generally pay less because they have fewer high-value claims and motoring convictions.

Confused.com said insurers had probably lowered their prices in response to these policies, which still need to be passed in Parliament and won't be enforced until 2019.

CEO Louise O'Shea said: "Finally drivers have had some good news with the end of rising vehicle insurance costs in sight".

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"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."Being loyal doesn't always pay, so to get the message across to cost-burdened drivers the team and I are guaranteeing to beat the price insurers are charging at point of renewal".

"If we can't beat it, we'll give you the difference, plus £20".

United Kingdom men are now paying £95 more than women, while young male drivers aged 17-20 are still paying the most of any demographic, £2,348 on average, compared to the £1,699 paid by their female counterparts.

While drivers living within Inner London are enjoying these cost decreases, they are the only motorists who can expect to pay over £1,000 for vehicle insurance, on average.

Meanwhile, those aged between 61 and 65 enjoy the lowest prices, with the typical policy costing just £363.

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