Car insurance prices continued to fall during the final quarter of 2012, new figures from the AA's British Insurance Premium Index (BIPI) have revealed.
The BIPI's Shoparound summary, which finds the average of the cheapest five quotes from a range of insurers for a variety of insurance risks, found that the average cost of car insurance fell by 2.9 per cent to £789 in Q4 2012.
The average car insurance quote from price comparison websites also fell by 2.6 per cent to £596, using the same sample cases.
However, despite the general trend of decreasing costs, it appears that premiums for younger drivers remain high. For example, a 23-year-old female student now pays 4.9 per cent more than before, while a 21-year-old male bank clerk pays an extra 5.5 per cent.
The EU gender equality directive is believed to have an impact on the rising cost of cover for younger drivers.
