The cost of car insurance costs has dropped to its lowest level in more than five years, according to new data.

On average, UK drivers can expect to pay £522 if they shop around for their car insurance, following a £71 (12%) drop in prices in the last 12 months.

Before this, prices were steadily increasing, reaching as high as £630 at the end of 2019.

However, since then, the latest index tracker by price comparison site shows prices have fallen by as much as 14% in the first quarter of they year – the steepest decrease in prices in more than six years. 

The shift in prices is being attributed to the pandemic significantly reducing the risk on UK roads.

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Police forces reported 192,001 road traffic accidents in 2020, down from 258,994 in 2019.  

DVLA data also shows that the number of people applying for a statutory off the road notification (SORN) jumped from 250,352 to 526,747 between February and March last year,

Louise O’Shea, CEO at, says insurance savings are only being seen by drivers who shop around.

Further research by the group found that almost two in five (38%) UK drivers who received their renewal notice this past quarter (April – June 2021) claim their insurance company increased the price by £44, on average. 

This is something that has been addressed by the Financial Conduct Authority (FCA), which has said that insurers must make it easier for customers to cancel the automatic renewal of their policy.

Both male and female drivers have seen their price drop by 12% over the past 12 months, although for men this equates to a £75 saving, and £63 for women, on average.

This brings the average cost of insurance for both genders to £557 and £464, respectively, and the gap between the two to £93.

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While all UK drivers benefitted from savings this quarter, how much will depend on where they live.

Drivers in Inner London and Manchester and Merseyside saw the greatest monetary drop in car insurance costs.

Prices in Inner London are now £102 (11%) cheaper compared to 12 months ago, and £101 (13%) cheaper in Manchester and Merseyside, on average.

However, these are the most expensive regions in the UK for car insurance, with drivers paying £808 and £675 respectively, on average.

This is close to double the amount paid by drivers in the cheapest areas.

For example, those in the Scottish Borders are paying £337 and some drivers in the Scottish Highlands and Islands are as low as £320.

Northern Ireland, however, is the only UK region where prices have risen in the last quarter, up £5 (1%) over the past three months to £530.

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However, while the price of car insurance is decreasing, some motoring costs are starting to creep up as the UK eases out of lockdown.’s fuel price index suggests that petrol and diesel prices have been on the up since the end of last year. According to the data, drivers can now expect to pay 131.4p for petrol, on average. This is 17p more than November 2020. 

Louise O’Shea, CEO at, said: "What we know is that only those who are shopping around are seeing significant price drops, and insurers are still increasing renewal prices for their loyal customers.

"While new rules set out by FCA will stop insurers from pricing new and renewing customers differently, this doesn’t guarantee you the cheapest price.

"Changes to the way insurers calculate their pricing, or if prices start to increase across the market, could lead to renewal prices increasing."