Car insurance premiums have fallen by 1% (£5) in the third quarter of 2020, according to the latest Confused.com Car Insurance Price Index.
The index is based on price data compiled from almost six million customer quotes per quarter, in association with Willis Towers Watson.
The average cost of car insurance is now £765 and has fallen for three consecutive quarters, following a £18 (2%) decrease over the past year.
Scottish Borders drivers benefited the most from the drop, with their insurance premiums decreasing on average by 5% (£30) to £554.
Inner London was the only UK region to “buck the downward” pricing trend, with the cost of comprehensive car insurance increasing by 3%
Graham Wright, UK lead of P&C personal lines pricing at Willis Towers Watson, said: “The further fall in premiums during the last quarter is perhaps unsurprising as motor insurers reflected on a relatively positive experience for the year to date.
“But with further Covid restrictions being introduced and a market response to the FCA’s recently released pricing practices report still to be factored in, uncertainty in premium levels continues.”
Louise O’Shea, CEO at Confused.com, said: “It’s been a turbulent few months for the world of car insurance and it’s likely to remain that way for some time as insurers try to adapt to dramatic and constant changes in driver behaviour.
“Not to mention how they navigate the much-needed changes announced by the FCA last month. Our analysts will be helping insurers to navigate this tumultuous period, but volatile pricing movements are likely to be a fixture of the coming year.”