Drivers told to act now as major cost is ‘at its lowest for a while’ | Personal Finance | Finance
Brits have been told this is a good time to make a move (Image: Getty)
Drivers are advised to act now as a “key window” has emerged. New data from Confused.com released today suggests that car insurance prices have dropped to their lowest level in almost three years, as drivers now paying £711 on average. This represented a £66 decrease over the past 12 months.
However, even though prices are still falling overall, the trend is starting to slow. Early signs that premiums are creeping back up for some drivers in recent months, meaning that, especially as fuel duty, road tax (VED) and other motoring costs are set to increase in 2026, according to specialists, this could be a “key window” for motorists to secure savings.
Matt Crole-Rees, motoring expert at Confused.com, 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.
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Brits have been warned of upcoming increases (Image: Getty)
“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.”
This is why, Mr Crole-Rees added, it is more important than ever to shop around to lock in the best price now, and ensure you are getting the best deal.
He said: “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.”
Younger drivers are seeing significant savings, according to data.
17-year-olds are now paying 23% less, equivalent to £517, compared to drivers of the same age 12 months ago, those in the know point out.
Similarly, 18-year-olds are facing lower premiums compared to last year, at £2,082 on average. This is a 15%, or £352 decrease compared to 12 months ago.
However, younger people are still paying high prices for their insurance, and premiums remain considerably higher than in recent years.
Figures show that prices for young drivers are as much as 44% more expensive compared to five years ago.
Although, data shows that prices for some age groups are starting to somewhat stabilise, with minimal changes year-on-year.
Those aged 70 have only seen a 2%, or £8, decrease compared to last year.
Similarly, drivers in their mid-20s are seeing very little change to premiums.
23-year-olds are now only paying 3%, equivalent to £46 less compared to last year.
This decrease is slightly greater for 25-year-olds, who are now paying 6%, or £78, less compared to 12 months ago.
