Insurers are not passing on cost savings to drivers, comparison site Confused.com warns.
Despite the cost of comprehensive policies falling the first time in three years, some 70% of drivers saw their premiums increase at renewal. After years of tax hikes and rising premiums, a third of drivers say car insurance is becoming unaffordable.
Louise O’Shea, chief executive at Confused.com, says: “It’s clear that many motorists are not seeing these savings reflected in their renewal letters, so it’s more important than ever to shop around to get a better deal.”
Drivers who shopped around have seen their insurance costs fall by 2% – equivalent to £13. But some 59% of drivers stuck with the same insurer and saw their premiums rise by £45 on average.
That downward trend is expected to continue, with prices falling a further 7% in the first three months of 2018, according to the latest Car Insurance Price Index.
Costs for insurers have eased off after the government reformed laws to crackdown on whiplash claims. But Confused.com says insurers are not passing on the savings.
The average car insurance policy is now £768 – up from a low of £499 in 2008. Men typically pay £95 a year more than women and younger drivers shell out more than double, with the average 18-year-old’s policy costing a hefty £2,114.
Meanwhile, those aged between 61 and 65 enjoy the lowest prices, with the typical policy costing just £363.