Consumers are seeing even cheaper prices as premiums are pushed down by a further £17 in the second quarter of 2014, a new survey by Towers Watson and Confused.com has found.
Prices for new comprehensive policies fell by an average of 2.8 per cent between March and June this year, adding up to an impressive 15 per cent saving over the past year, or £100 per policy.
Gemma Stanbury, head of car insurance at Confused.com said: “Once again, it is positive news for motorists as car insurance prices continue to fall, with comprehensive premiums now averaging £579.
“While it is great news for consumers that premiums are continuing to fall, these ongoing drops in car insurance prices are unlikely to be sustained. We’ve seen premiums reduce continuously over the last couple of years, so motorists should not necessarily expect prices to continue dropping at this rate.”
The fall in prices has affected car insurers negatively, with some like Admiral issuing bonds for the first time to diversify their capital base.
New government policy on whiplash is also expected to affect the market in the coming months.