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THE AVERAGE COST OF AN ANNUAL CAR INSURANCE POLICY HAS DROPPED TO £418 - THE LOWEST IT'S BEEN SINCE EARLY 2023 - AND 7% CHEAPER THAN THE PREVIOUS QUARTER, WHEN THE AVERAGE COST WAS
£450. 10:52, 01 Jun 2025 Millions of drivers face a "mandatory" £418 charge to stay on the road. The average cost of an annual car insurance policy has dropped to £418 - the lowest
it's been since early 2023 - and 7% cheaper than the previous quarter, when the average cost was £450. Tom Banks, car insurance spokesperson for Go.Compare Car insurance, said: “It’s
great to see that car insurance prices have dropped – and while there has been some fluctuation in recent months, the general trend appears to be downward, which will be good news for
motorists. “Insurance is a significant cost for anyone with a car, so trying to get a good deal and not overpaying for your cover is really important – no one wants to pay more for their
insurance than they have to. READ MORE LLOYDS BANK BRINGS IN BIG CHANGE AND ANYONE WHO IS IN A 'COUPLE' WILL BENEFIT "That said, ensuring the cover is right for your
requirements is just as important. This is why it’s good to understand the factors that affect the price you pay – some will be fixed – i.e. your age and where you live - but there are
things you can do to keep costs down. Article continues below "For example, shopping around at renewal is still the best way to save money – accepting the first quote you’re given
doesn’t necessarily mean you have the best deal. In fact, it rarely does. “There are over 100 insurance providers on the larger comparison sites, who all have different prices and levels of
cover so accepting the first price you’re given is unlikely to be the best one. "It doesn’t take long to compare policies using a comparison site and you could save a significant amount
of money on your insurance costs.” Article continues below The cost of your car insurance can also be influenced by your location, road users have been warned. For example, if you live in
London, the GoCompare Index shows that car insurance will cost on average £598 a year. That is around 74 per cent more expensive than Wales, where the median cost is £343, the car insurance
comparison website added.