The Costs of Car Insurance Begin to Drop image

The cost of car insurance finally sees a drop after years of steady increases.

Between April and June the average annual comprehensive insurance was £797, 7.1% down compared with the same period last year. The biggest decrease was seen by drivers aged 71 and above, who paid 8.8% less this year. Despite the decrease men are still paying around £110 more than women on their car insurance. But this gap will surely close in December after the implementation of the 2012 EU Gender Directive that forbids the use of gender in its own right as an insurance rating factor.

Man drivers, especially the younger ones under 21, pay more on their car insurance than young women, as they are considered a higher risk on the road. For example women aged between 17 and 20 pay around £1,878 for comprehensive insurance, while young men of the same age pay £3,596. It also depends on the area where your residence is. A 17-20 year-old male driver pays £5,394 in Manchester or Merseyside, and £2,999 in Central Scotland.

Gareth Kloet, head of car insurance at Confused.com, said: ‘Competition between car insurance providers is currently very high.We anticipate that drivers will continue to reduce their annual mileage as a result of high motoring costs and seek cheaper vehicles in their search for more affordable cover.’