Car insurance prices have fallen to the lowest price in more than two years, although millions of drivers are still facing higher renewal costs.
New data has found that drivers around the UK are now paying an average of £757 for their motor cover, representing a saving of £144 compared to the same time last year.
In the last three months alone, prices have dropped by three per cent (£20), with the UK seeing almost 18 months of falling car insurance costs.
Compared to 12 months ago, 17-year-olds are seeing the biggest savings. The average premium now costs £2,051, marking a massive 27 per cent saving worth £775.
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Many drivers could still be losing out by not shopping around when renewing their car insurance policies
GETTY/PA
Other younger age groups are also seeing significant year-on-year price drops, including 18-year-olds (£697), 19-year-olds (£532), 21-year-olds (£532), and 20-year-olds (£394).
However, the new research is warning that not all drivers are seeing the savings at the time of renewal, especially those staying with the same insurer.
Motorists are constantly advised to shop around for their car insurance when it is time for them to renew, as they could save hundreds of pounds on their cover.
An estimated 49 per cent of people have claimed that their renewal price has increased over the course of the last year.
Car insurance prices have dropped significantly for the majority of drivers
GETTYMotorists who faced more expensive renewal prices reported that they were asked to pay an average of £79 more per year.
Despite this, those who were offered a cheaper renewal price claimed that it was £57 cheaper than the previous 12 months.
While any saving would be welcomed by motorists when looking to renew, data from Confused.com states that they could save £144 if they shop around.
Rhydian Jones, motoring expert at Confused.com, said: "Car insurance prices have been dropping for some time now - and this is great news for those who are due to renew soon.
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"Our latest data shows that the cost of a new policy, on average, is £144 cheaper compared to last year.
"But some customers aren't seeing the same savings in their renewal price from their insurer."
Other age groups are also benefitting from cheaper renewal prices, including those just over 30, who will pay less than £1,000 for the first time since early 2023.
The average cost of a policy for a 31-year-old is now just £992, an impressive drop of 15 per cent, or £180, compared to 12 months ago.
Younger drivers are seeing major discounts on their car insurance policies
PAWhile 49-year-olds are saving just £87 compared to the same time last year, it is still a 12 per cent discount. These drivers are now paying just £664 for their policies.
Jones added that motorists should expect to see their premium price go down when it comes to renewing their car insurance policy, although it may also stay the same.
He said: "But as average prices drop, insurers can become more competitive, which means you could get a cheaper price elsewhere.
"It's important not to just stick with a price because it looks good - you could be missing out on a lot of money."
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