Data from Compare the Market has found car insurance prices are falling by an average of £80 year-on-year in Q4. Average costs now stand at just £640 in the cheapest average price for a three month period since 2014.
“It looks like insurers have been keeping premiums lower as part of a clever pricing game to try and lock in as many customers as possible before new regulations are introduced in January.
“Our figures suggest motorists could lose out if they auto-renew their policy.
“By switching to the cheapest premium instead, motorists could save around £100 and young drivers could see even bigger savings of almost £300.
“These savings gained by those drivers switching their provider could also help to offset the current rising cost of living.”
Compare the Market has also warned young motorists could benefit from the massive sayings.
The average premium for drivers aged under 25 now stands at around £1,205.
However, by shopping around and switching before the rules change, young drivers could save up to £298.