The figures were released by trade body the Association of British Insurers (ABI), which tracks the cost of comprehensive car insurance policies across around 90% of the industry. The survey found:
- Motorists are paying an average £374 for comprehensive car insurance cover
- During the last three months of 2013, the average dropped to £370 – which was almost £40 less than the average premium a year earlier
- Since the start of 2012, the average cost of comprehensive car insurance has dropped by 11%
James Dalton, the ABI’s head of motor insurance, said: “Motorists and politicians rightly demand to know what drives the cost of car insurance.
“The 9% fall in the average comprehensive motor premium last year shows that insurers are fulfilling the commitment they made to the government to pass savings from changes to making civil claims in court to motorists by lowering car insurance premiums.
“Premiums can get even lower, which is why the government needs to press ahead with tackling exaggerated and fraudulent whiplash claims which honest motorists are paying for through their insurance premiums.”
Meanwhile, the ABI has also research how motorists shop for car cover.
The results revealed drivers are more likely to shop around for cheap motor insurance than to change energy providers, banks or look for cheaper savings or ISAs.
The ABI quizzed nearly 1,500 motorists who had bought car insurance in the past year –and found eight out of 10 looked at motor insurance quotes from at least two insurers before settling on a provider.
This compared with 77% of those looking at alternative energy suppliers, 75% of those with a cash ISA compared products, and 64% of those with a mobile phone looked around for the best mobile phone deal.