That puts the typical premium at £420 – down from £448 in December. And that’s the biggest month-on-month decrease since this time last year.


The numbers come from our analysis of the quotes run on our car insurance channel. We don’t know whether the downward trend will continue, though. Prices actually rose during 2014 from their low point in February, when the average price was just £378.


Switch and save


What is clear, though, is that drivers shouldn’t expect to secure automatic savings simply by renewing with their current provider.


That’s because insurers tend to save their best prices for ‘new’ customers, not existing ones. So it’s crucial to act like a new customer and see who offers the best combination of price and quality when you run a quote – and switch to secure your saving.


There have been big fluctuations in premium prices recently, but January’s dip will be welcome relief for those looking for cover, even if it turns out to be a seasonal trend.