Drivers face having to pay £861 to follow mandatory DVLA rule

The typical quote is down by £63 in a year bringing the annual average premium down, but it will still mean you're forking out £861.

The average cost of car insurance has fallen for the first time in three years, road users have been told. The typical quote is down by £63 in a year bringing the annual average premium down, but it will still mean you're forking out £861.

Confused.com said prices have finally started fall after a particularly difficult period for drivers when, at one point, premiums were rising by as much as 58 per cent a year. It said: “While data suggests that drivers shopping around are likely to see a cheaper price now compared to last year, there are still ways to save money.

“In fact, additional data found that those shopping around ahead of time are able to save a significant amount on their premium. For example, those who take out a policy 18 days before their renewal date paid 48 percent less than those who bought the day their renewal was due.

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“Another way drivers could save money is to add a named driver to their policy if they’re likely to use their car from time to time. According to our latest price index data, those who have a named driver on their policy are paying £125 (13 per cent) less than those on a single-person policy. And the savings are even greater for those who have their spouse on their policy, of around £363 (38 per cent), on average.”

Rhydian Jones, motoring expert at Confused.com car insurance, said: “After a long period of seeing their car insurance increase, the news of prices starting to come down will be a relief to drivers. It’s the respite we’ve all been waiting for.

“However, prices are still a lot higher than they have been historically. Many of us will still be paying more than we have in the past, despite gaining more driving experience or building up our no-claims bonus. This is why it’s so important to keep shopping around and to make changes to our driving habits if we can. We could also change how we use our cars to see if we could bring our price down even further.

“If you are likely to share your car and are able to add a named driver, ideally who has more driving experience, this could offer some savings on your price. Similarly, shopping around with plenty of time is known to offer significant savings. Or if this isn’t doable, moving your car to a more secure location overnight or adding more security could help save you some money.

“But the important thing to remember is not to accept your current insurer’s renewal quote without looking elsewhere first. That’s why price comparison sites are a great way to check whether you’re getting the best deal. And with a much broader market now than we’ve seen in the past, it’s highly likely that there will be a better policy out there for you, at a better price. We’re so sure on this that we offer to beat your renewal. And if we can’t, you’ll get the difference, plus £20.

“There’s no guarantee that prices will continue to fall, especially as insurers continue to face the challenge of rising claims cost due to inflation. So taking steps to make sure you’re getting the best price is still as important as ever.”