Drivers urged to use tip for cheap car insurance as prices plummet 20 percent
Whilst the average cost of car insurance has fallen 21 percent in 12 months, drivers have been urged to follow one rule to get even bigger savings on cover.
Drivers have been urged to expect savings when they renew their car insurance so long as they follow a simple tip when looking for their next policy.
As motorists across the country brace for vehicle tax to rise, with some new electric models increasing by £620 per year, the average cost of car insurance dropped by £164 in 12 months.
Rhydian Jones, motoring expert at the insurance comparison service Confused.com, suggested that the reduction is likely due to the declining number of claims being made by drivers.
He explained: "We’re starting to see a consistent trend of prices decreasing, and this is great news for drivers! This could be because insurers are paying out fewer claims than before. Paying out on less claims means more savings to pass on to customers.
"But this doesn’t mean that prices won’t start to increase again in the future, especially if claims start to increase. Staying on top of your insurance is key to getting the best price."
According to Confused.com, the average cost of car insurance during March 2025 was £777 - a reduction of more than 21 percent over the space of a year.
Whilst motorists aged 18, who have not had the chance to build up a no-claims bonus (NCB), are still paying the most for cover at £2,434, they have also seen the biggest savings over the past year, with prices falling by £711.
In addition to factors such as the driver's occupation, age, location, and vehicle they drive, insurance costs are largely based on how many other drivers are claiming and the price of repair bills and spare parts.
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In order to get the best possible savings, Rhydian recommended that drivers must do one thing to make sure to give themselves plenty of time to find a good deal, looking to buy around three months before the current policy expires in order to get the best chance of a massive discount.
He advised: "You’ll often see a better price if you shop around at renewal time. Even if your renewal price from your insurer is cheaper than last year, it’s likely there will be another insurer out there offering a better price.
"Doing this ahead of time can save you even more too. Our data shows that if you shop around about three weeks before your policy is due to renew, you could benefit from the biggest savings. Leaving it too late, or simply accepting your insurer's renewal price could mean you lose out on great savings."
