Car insurance prices have hit their lowest level in almost three years, but petrol, diesel and electric car owners have been warned of possible price hikes on the horizon. New data from Confused.com has revealed car insurance fees now sit at £711 on average, a £66 decrease over the past 12 months alone.
Some motorists are seeing significant savings, with younger drivers among the most to benefit from a drop in fees. Data shows that newly-qualified 17-year-olds are paying 23% less, or £517, than drivers of the same age just 12 months ago.
18-year-olds are also facing much lower premiums compared to last year, with fees down 15% or £352. Figures suggest that car insurance costs have steadily decreased year-on-year for 18 months, with fees down by as much as 17% at the start of last year.
However, there is some cause for concern: prices have only fallen by 9% over the past year, the smallest change in more than 12 months. In fact, over the past three months, prices may have started to rise, posing a possible blow to road users.
Confused.com data shows that some areas, such as Northern Ireland, Falkirk and Chelmsford, are among those seeing the biggest price hikes.
Matt Crole-Rees, motoring expert at Confused.com car insurance, said: “Car insurance prices are at the lowest they’ve been for a while – but data also shows prices are creeping up for some drivers, and stalling for others. And this could mean price increases are on the horizon.
“This, alongside fuel and tax costs increasing this year, will mean more financial pressure for drivers. So any further savings you can make on your insurance now will be hugely beneficial in the long term.”
Drivers could be missing out on the best deals, with road users typically shopping around 19 days before their renewal is due and holding off finalising a deal until 10 days before an agreement starts.
Matt added: “And this is why it’s more important than ever to shop around, not only to lock in the best price now, but to ensure you are getting the best deal.
“The biggest thing to consider is when you shop around. Leaving it until the last minute can in fact mean you pay more. Our data shows that 28 days is the ‘sweet spot’ for when drivers typically pay the least for their insurance. So being organised and getting it sorted early can pay off.”