Car insurance premiums have plummeted in the first three months of this year, new data has revealed as MoneySuperMarket.com found premiums were down by 12 per cent for the first quarter of 2018.
After starting the year at an average of £574.11, premiums had fallen to £504 by the end of March after the comparison site collated data from 1.7 million insurance quotes.
This had followed two years of constant rise, as at the end of 2015 the average premium was £431.
The only segment that rose in the last three months was the 17-19 age bracket, which saw a 1.21 per cent increase to an average of £1,357.99.
Drivers from Colchester saw their premiums fall the most with an 18.31 per cent fall from January 1 to March 31, with the Kent town of Medway seeing a 17.51 per cent drop and motorists in Halifax getting 14.63 per cent off their premiums.
The largest regional drop came in the East Midlands, which saw premiums down by 17.9 per cent, with Wales in second following an average decrease of 14.1 per cent.
Save money on your new car todayFemale drivers saw their premiums drop by 14.8 per cent compared the fourth quarter of 2017, whereas men only saw a decrease of 9.8 per cent.
Consumer affairs expert at MoneySuperMarket.com Kevin Pratt, said: “For once, it’s good news for hard-pressed motorists after months of price increases. Last year, premiums rocketed because of changes to the way personal injury compensation payments are calculated - insurers increased prices to help fund larger pay-outs to victims of accidents.
“Thanks to a government u-turn, the impact of the change on compensation awards will be reduced at some point this year, allowing insurers to ease premium hikes.
“Additionally, the government is overhauling the legal system later this year to reduce the number and size of fraudulent whiplash claims, which currently add £35-£40 to every car insurance premium.”
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