Car insurance premiums have gone into reverse, with drivers seeing price cuts of 5.5% in the past 12 months, according to Consumer Intelligence.
Average bills have dropped to £712, with the price cuts accelerating since bills hit a record high in September 2017 and falling for eight straight months as insurers compete for business.
Under-25s are the biggest winners, Consumer Intelligence has found. Their bills have fallen by 11.9% as they benefit from the continuing growth of telematics.
Around 61% of the most competitive policies for under-25s are now offered by telematics providers. But younger drivers pay an average £1,635 a year compared with £413 for over-50s and £629 for motorists aged between 25 and 49.
All parts of the UK are seeing premiums drop, although the decrease in Scotland was marginal at 0.1%. However, Scots pay the lowest average premiums of £522, which is nearly half the annual bill of £1,024 in London.
But average car insurance bills are still 21.9% higher than in October 2013 when Consumer Intelligence, whose figures are used to calculate official inflation statistics, first began collecting the data.
John Blevins, pricing expert at Consumer Intelligence, said: “Insurers are now free to compete on price without insurance premium tax increases or changes to the Ogden rate, which sets compensation for major personal injury claims.”
“The downward trend should continue with the increasing adoption of telematics helping to maintain the momentum. It’s interesting that around 23% of all the most competitive quotes are now from telematics providers.”