Driving can be an expensive venture, but according to the latest reports, it is actually getting cheaper to get your car on the road, which will come as good news for the millions of drivers across the nation.
In recent months, it's been reported that the cost of fuel has been dropping, as fuel duty freezes and the falling price of a barrel of oil help to bring down the overall cost of filling a tank.
And now it has been reported that the price of the average car insurance policy has been falling in the last few months. The Association of British Insurers (ABI) said that in the first quarter of 2015, the average price of an insurance premium was just £360.
This means that in the first three months of the year, drivers were paying, on average, two per cent less than they were in the previous quarter. And although premiums are slightly up on the same time last year, they are three per cent lower than in 2013, indicating a level of consistency in low pricing for drivers.
Overall, the price of an insurance premium is lower now than it was at any time in 2012 or 2013, and only 1.7 per cent higher than at this time in 2014.
Prices are falling thanks to the fact the market is now a more competitive place, with insurers looking to attract customers with their best prices.
Rob Cummings, ABI’s manager, general insurance, said: "Motorists are continuing to benefit from a highly competitive motor insurance market, and from insurers delivering on their commitment to pass on savings to customers following the government’s reforms to ensure personal injury claims are paid in more efficient and proportionate manner."
The ABI also said that with the reforms effect starting to fade, the new government needs to make sure it does its best to get drivers the best possible deals again.
Posted by Danielle Barge