The AA has announced that car insurance premiums have fallen significantly over the last year.
The average premium fell by 19.3% in the year preceding the 30th June. This was the largest drop in average price since the AA began indexing these two decades ago.
Apparently the average, quoted, “shop-around” premium price has dropped and is £504.29 for comprehensive car insurance.
Over the last three months it has dropped by 6.1% from the average over the first three months of this year, showing a steady decline in price.
Third party insurance is slightly higher than comprehensive at £679.32.
Those aged 17-22 are, predictably, still paying the most an average of £1,096 per year, but this too has dropped by 7.5% over the last three months, and by 24% by over the last year.
This is bad news for pensioners though, as those over 70 have only had their average insurance price drop by 2.6%. However, this group of people are paying the lowest amount on average at £302 per year, so a smaller decrease is to be expected.
It is not thought that prices will drop much further as stubbornly high numbers of injury claims are still coming through for injuries such as whiplash.
It has been thought that people making these claims fraudulently has put the price of the average insurance premium by £50.
You should also make sure, when renewing your insurance, to shop around instead of simply renewing your current quote, as this may help you to find a cheaper quote than your current insurer offers.