By Lauren Howells.
The average car insurance bill has fallen from £847 to £752 in the last 12 months, according to new figures released by comparison website Confused.com.
Changes to the Ogden discount rate used to calculate compensation payouts, which were early last year, had for the increase drivers had seen to their car insurance premiums in 2017. The changes were subsequently revised in autumn last year after a from the insurance industry.
Drivers now enjoying “some respite” from inflated prices
The comparison website said that drivers were now enjoying “some respite” after suffering from the inflated prices that followed the Ogden rate announcement, which caused insurers to “accelerate” prices.
However, their new research revealed that those who renewed with the same insurer were not benefiting from these new-found savings, with 62% of drivers who had bought car insurance in April-June 2018 reporting an average premium increase of £49.
revealed what it called the “sweet spot”, the best time for drivers to shop around for their car insurance. It said that it had discovered that drivers could save up to £613 on average by looking for their car insurance on day 21 of their 30 day renewal period.
Prices may begin to flatten
However, said that despite car insurance premiums being “significantly cheaper” than they were in 2017, the decrease in the last quarter was “minimal” (-2% or -£16), which may suggest that prices could begin to level out.
It predicted that as it was likely that insurers were “already accounting” for the possible review of the Ogden rate, drivers probably would not see much of a reduction on their premiums over the next year.
In general, car insurance premiums have continued to rise over the past decade, with the average cost of car insurance in the second quarter of 2008 significantly lower than it is today, at just £499.
Men paying £92 more than women
According to ‘s figures, men sill pay £92 on average more than women (a drop from £95 in the previous quarter), despite the EU’s gender directive meaning that insurers are no longer able to assess a driver based on their sex. However, other risk factors, such as the fact that men tend to drive more expensive cars, cause men to have these higher premiums. Men also tend to have more motoring convictions than women.
17-year-olds saw a £403 price reduction year-on-year
While drivers of most ages have seen some level of decrease in their insurance costs, 17-year-olds saw a £403 price reduction year-on-year and are now paying less than 18 and 19-year-olds. says that this is likely to be due to more telematics insurers specialising in 17 years old entering the market.
Louise O’Shea, CEO at , said that although car insurance prices were dropping, they would start to increase once again at some point in the future and encouraged drivers to shop around.