Car insurance finally starting to drop in price

Car insurance comparison experts are sharing their insights into the current insurance market.

Based on the latest data from car insurance comparison site Quotezone.co.uk, the UK average cost of car insurance in Q4 has continued to witness a decrease in price. 

After a dramatic surge in 2023, car insurance costs have fallen across the country over the last 12 months, with motorists paying an average of £769 in 2024 Q4 versus £885 in the same quarter the previous year. 

This decrease should come as a welcome relief for motorists across the country, with rising repair costs, car tax hikes and new low emission zones all contributing to higher bills.

According to the index, motorists in London are paying the most for their policies, with premiums as high as £1,144 in December.

Drivers in the West Midlands, Yorkshire and North West England are also some of the highest paying in the country, all paying an average premium of over £780.

REGION	October 2024	November 2024	December 2024
London	1165.4	1209.67	1144.98
West Midlands	945.32	1018.72	921.83
Yorkshire	805.45	880.29	788.76
North West England	825.85	899.02	783.38
East Midlands	779.83	839.46	754.05
South East England	718.96	765.05	694.45
East of England	729.39	791.91	694.43
NI	685.55	703.96	659.93
Wales	664.85	719.74	628.39
Scotland	649.97	671.18	611.82
North East England	671.69	704.63	608.41
South West England	605.43	627.43	565.97

 Average car insurance costs per region for Q4 2024.

While the motoring insurance experts hope the insurance price decrease will continue throughout 2025, they have provided tips to help motorists keep their insurance costs as low as possible.

The team are urging all drivers to check their policies and make sure all the information they have told their insurer is fully accurate and up to date.

Factors such as driver age, job title, mileage and where the vehicle is kept overnight can all affect the premium cost.

Even modifications such as vehicle branding, spoilers or alloy wheels can affect pricing and need to be declared or drivers could run the risk of invalidating their insurance policy.  It’s vital all drivers check the full modifications list and update where appropriate when finalising their details.

Greg Wilson, CEO and car insurance expert at Quotezone.co.uk, said: “At a time when so many are struggling to keep budgets in place, the news that insurance premiums are starting to come down in price comes as much-needed relief.

“Young drivers in particular often pay more for their premiums as they have less experience on the roads and are statistically more likely to have an accident. However, it’s great to see these decreases in cost apply to the youngest drivers on the road as well. 17–24-year-olds were paying an average of £2130 in October, versus £1986 in December.

“While we hope the lower insurance premiums highlighted in the final quarter of 2024 continue throughout 2025, we also want to make sure motorists are keeping their insurance premiums as low as they possibly can.

“It’s important to raise awareness of the most surprising factors drivers might not be aware of to help keep their costs down. It’s also crucial to make sure drivers are being quoted correctly for the policy they need and against accurate factors such as their car use and mileage.

“It could simply be that a driver has moved house or job or hasn’t updated their mileage with their insurance provider, but there are many factors that can inflate and even invalidate an insurance policy if the details are inaccurate.

“In order to help keep costs as low as possible and ensure drivers are fully covered if anything were to go wrong – it is important to keep the provider updated and review our tips for areas where savings can be found, such as looking at the day and time to make a purchase.”

Quotezone helps drivers compare and find savings on all sorts of car insurance products, such as young driver, older driver and modified insurance.