The latest Confused.com Car Insurance Price Index in association with WTW has recorded a 16% drop in comprehensive car insurance premiums with motorists now paying an average of £735 for cover. This is down by 16% year-on-year and sees drivers paying £136 per policy. Premiums are down by 26% since their December 2023 peak.

Year-on-year, premiums for drivers under the age of 25 were down by 17% while 17-year-old motorists saw a 28% fall, taking their average premium to £2,008.

Tim Rourke (pictured), UK head of P&C pricing, product, claims and underwriting at WTW, said: “The impact of market consolidation is potentially driving some broadening of footprints into traditionally less competitive areas of the market. Combined with lower claims frequencies in many segments, this may be maintaining the continued downward trend.

“Average premiums have now dropped for the seventh consecutive quarter despite a backdrop of high vehicle repair costs and third-party injury claims inflation running higher than CPI levels.”