A report by the AA has revealed that car insurance prices have dropped in the third quarter of this year, potentially raising hopes for motorists searching for young driver insurance often face annual insurance prices totalling to thousands of pounds.
However, the price decrease is likely to disappoint many motorists – the average comprehensive annual insurance policy has fallen to £921 which only shows a £2 drop.
Simon Douglas of the AA said, "The past two years have seen the biggest-ever rises in premiums as insurers struggled to close a widening gap between premium income and claims costs."
Mr Douglas further stated that car insurances prices are unlikely to continue decreasing and costs may rise again next year, but at a more "modest rate".
The report revealed that the Office of Fair Trading (OFT) is investigating whether a lack of competition between insurance providers has caused the steep rise in car insurance prices.
Preliminary findings are expected to become available for holders of both car insurance for young drivers and more experienced motorists in December of this year.