A new study has found that the average cost of car insurance has continued to fall during the final months of 2024, but drivers are still paying hundreds more than average if they live in certain parts of the country.
Whilst car insurance remains one of the biggest expenses a driver is forced to pay each year, the average cost of cover dropped to £769 during the final three months of 2024 – a reduction of around £115 in a year.
Greg Wilson, CEO of the price comparison service Quotezone.co.uk, suggested that young drivers have benefited most from the change.
He explained: “At a time when so many are struggling to keep budgets in place, the news that insurance premiums are starting to come down in price comes as much-needed relief.
“Young drivers, in particular, often pay more for their premiums as they have less experience on the roads and are statistically more likely to have an accident. However, it’s great to see these decreases in cost apply to the youngest drivers on the road as well. 17–24-year-olds were paying an average of £2,130 in October, versus £1,986 in December.”
One of the main reasons why car insurance prices have steadily fallen after recent months is due to the lower inflation rates currently experienced, which has helped to make the cost of labour and spare parts more predictable.
Most car insurers also saw fewer claims being made in 2024, suggesting that more motorists are taking fewer risks behind the wheel to prevent their future premiums from rising.
However, Quotezone.co.uk also found that, even though prices across the UK have lowered, the average cost of car insurance in different regions can vary by more than £500.
Understandably, motorists in London typically pay the most for car insurance, with the average 12-month premium costing £1,144.98 in December 2024.
This is likely due to the high population density of the capital, meaning there is a higher risk of accidents per mile than in other parts of the country.
In comparison, drivers in the South West of England paid the least for car insurance over the month, with the average premium costing £565.97.
