Cost of car insurance at lowest in four years

The cost of insuring a car has fallen to a four-year low as motorists benefit from a record 19% drop in average premiums compared with a year ago.

The Confused.com car insurance price index, in association with Towers Watson, reveals the average cost of comprehensive car insurance in the first quarter stood at £596, a drop of £140 against this time last year.

The figure, including a reduction of 7.5% on the previous quarter, means that average premiums have dipped below £600 for the first time since late 2009.

Confused said the price drops were across the board, with both male and female motorists in all age groups benefiting from reduced premiums.

However, it warned that the pattern of continuous price reductions over the last couple of years was unlikely to be sustained.

The benefits of falling prices have been particularly notable for younger drivers as the average premium for a 17-year-old fell by nearly 39% in the last year, equating to a cost saving of nearly £1,400 to £2,203 for first-time motorists.

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