Quarterly data released today by the UK’s leading price comparison website, MoneySuperMarket, highlights a significant drop in the price of car insurance, with the average fully comprehensive policy falling £70 in the first three months of 2018, from £574.11 to £504.

The data is based on analysis of 1.7 million car insurance quotes on MoneySuperMarket between January and March 2018. It suggests insurers are reducing premiums following government announcements on reforms to the way personal injury compensation payments are calculated and how whiplash claims are handled by the courts.

Accident claims costs are also thought to be falling because the UK’s fleet of private cars is gradually becoming safer thanks to newer models boasting safety features such as autonomous emergency braking and adaptive cruise control.

Average insurance premiums in the London area dropped by 9.6% in the last quarter from £801 to £724, however this is still quite a way off from cheapest place to insure your car. This is the Galashiels in Scotland where the average premium is just £309.70!

Despite prices falling across almost every category, it was more bad news for young drivers aged 17-19, who saw the average fully comprehensive premium rise 1.2 per cent, from £1341.77 to £1357.99. All other age groups had reason to celebrate though, as prices fell 5.7 per cent for those in their thirties, 5.5 per cent for those in their forties and 2.3 per cent for those over the age of 65.

Kevin Pratt, consumer affairs expert at MoneySuperMarket, commented: “For once, it’s good news for hard-pressed motorists after months of price increases. Last year, premiums rocketed because of changes to the way personal injury compensation payments are calculated – insurers increased prices to help fund larger pay-outs to victims of accidents. Thanks to a government u-turn, the impact of the change on compensation awards will be reduced at some point this year, allowing insurers to ease premium hikes.”

To find out how London compares to the rest of the UK in terms of car insurance premium you can take a look MoneySuperMarket’s price comparison index here – https://www.moneysupermarket.com/car-insurance/price-comparison-index/