Rocketing car premiums are starting to tail off according to new research from Consumer Intelligence.
Although the cost of an average car insurance premium rose by 34% last year to May, the final three months saw premiums drop by 1.3% which was the first decline since the last three months of 2021.
Quotes for car insurance drivers averaged between £500 and £749, the research indicated and have more than doubled since October 2013.
Max Thompson, insurance insight manager at Consumer Intelligence, said: “The escalation of car insurance premiums may finally be at an end, with insurers now reducing premiums and jostling to get to the top of the screen on the price comparison website results pages.
“Insurers are making their pricing efforts more visible to consumers.
“There are now more price cut offers visible on quotes than messages relating to cover benefits, which is the first time this has been the case since July 2022.”
Telematics groups, which use apps to track driver behaviour and performance, providers also offered a higher proportion of the top quotes in May compared with February in a move to attract younger drivers.
RAC head of policy Simon Williams said: “While it’s positive to learn that car insurance premiums are finally starting to come down, new RAC research shows the rising cost of insurance is the second biggest motoring concern of the year after the poor state of local roads.
“This is felt even more acutely by the youngest drivers, with four in 10 (44%) under 25 saying insurance costs are their biggest worry.”