Car insurance prices have dropped to the lowest amount in roughly three years, offering welcome relief for millions of drivers.
Fresh research shows the average cost of car insurance in the UK is now £711, marking the lowest price recorded in almost three years.
This represented a £66 decrease compared to 12 months ago, although experts have warned that the decline is slowing across some regions.
In the past three months, insurance prices for drivers aged between 49 and 70 have increased by £12 on average.
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Northern Ireland, Falkirk and Chelmsford were found to have the biggest increases, with data showing insurance prices rising by £41, £33 and £16, on average.
While these changes may not be seen when drivers shop around just yet, savings could be seen in the near future.
Experts stated that car insurance costs have been steadily decreasing year-on-year for 18 months, dropping as much as 17 per cent at the start of last year.
However, in the past 12 months, prices have only dropped by nine per cent.
Car insurance costs risk increasing in the next few months due to growing conflicts and tax hikes
|GETTY
Matt Crole-Rees, motoring expert at Confused.com, said: "Car insurance prices are at the lowest they've been for a while - but data also shows prices are creeping up for some drivers, and stalling for others. And this could mean price increases are on the horizon.
"This, alongside fuel and tax costs increasing this year, will mean more financial pressure for drivers. So any further savings you can make on your insurance now will be hugely beneficial in the long term."
He explained that the data showed that 28 days before renewing car insurance cover is the "sweet spot" for when drivers can typically pay the least for their insurance.
According to the data, younger drivers, particularly 17-year-olds, were found to be paying 23 per cent less than one year ago, equivalent to £517.
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The report showed car insurance premiums dropped to the lowest level in roughly three years
| GETTYSimilarly, 18-year-olds were seen to be facing lower premiums compared to last year, at £2,082, on average, marking a drop of £352 compared to 12 months ago.
Regionally, drivers in Manchester and Merseyside have seen the biggest drop in prices, of 14 per cent, equivalent to £132, year-on-year, on average, with drivers in the region now able to expect to pay £804 on average.
South Wales followed with similarly low prices, having seen an 11 per cent increase of £68 compared to last year.
While the drop in prices is welcome, other costs creeping up across the UK risk offsetting the progress made in lowering premiums.
Car tax hikes will come into effect on April 1 | PACurrently, fuel prices have been rising rapidly due to instability in the Middle East, which has sent petrol and diesel prices soaring.
Meanwhile, from September, the freeze on the 5p per litre fuel duty cut will be removed and will soon rise each year with inflation, making it more expensive to fill up.
Another price increase drivers could expect will be coming next week when Vehicle Excise Duty rates increase from April 1, again falling in line with inflation.
The new rates will see prices increase by an average of £5, depending on the emissions of the vehicle, with higher polluting cars set to pay more.