£221 boost for drivers – but one type of car ‘costs £217 more’

London: Motorists are getting some good news. Car insurance costs have dropped for the first time in two years. Research from Compare the Market shows an average decrease of £221, or 23%.

The average premium is now £729, down from £950 last December. This is the lowest average since May 2023, when it was £718.

Experts believe the drop is due to stabilizing claim costs and slowing inflation. However, premiums are still £105 higher than in December 2022, when they were £624.

Older drivers haven’t seen as much of a decrease. Those aged 80 and above saw a drop of £61. In contrast, drivers under 25 experienced a £425 drop, bringing their average premium to £1,577.

In London, drivers saw the biggest drop, with premiums down £370. However, London drivers still pay the highest average premium at £1,202. In Wales, the average cost fell by only £62, now standing at £620.

The type of car also affects insurance costs. Automatic cars average £860, which is £217 more than manual cars, which average £643.

Automatic cars are usually more expensive to buy and insure. Their complex gearboxes can also be costlier to replace. With premiums dropping, drivers should shop around for better deals.

Even if your renewal quote is lower, comparing online can save you money. Drivers could save up to £510 by using Compare the Market.

Julie Daniels from Compare the Market says many will be happy about the lower costs. Cheaper insurance is a relief after years of rising prices.

She advises all drivers to compare prices online before renewing. Even if your renewal price drops, shopping around can reveal better savings.

All premium figures come from Compare the Market. Most users found quotes lower than last year’s prices.

Research shows that 51% of consumers could save £510 on car insurance by using Compare the Market.