Car insurance is CHEAPER than a year ago but 70 per cent said their premium increased – here's how you can reduce your costs

CAR insurance premiums have dropped for the first time in 3 years – but Brits say they haven't noticed the difference.

The average annual policy now sits at lb768 – down by lb13 from Twelve months ago, according to latest figures.

Reforms on injury payouts and whiplash laws have seen insurers slash prices.

But 70 per cent of drivers said their renewal quote has actually increased.

And Confused.com's price index report found it was down to motorists sticking with the same insurer.

Figures show Brits pay a typical lb45 "loyalty tax" by not looking around every year.

Around 59 per cent of drivers stick with the same insurer rather than locate a better deal, based on the study.

That means they're passing up on savings using the price index revealing average policies have tumbled this season.

In the first 3 months, prices fell by lb59 and over the past 12 months it's down by lb13. That's the very first drop for nearly three years.

Teen drivers are celebrating the biggest fall as they're now paying lb118 under in April 2021 – but that still takes their average premium to just about lb2,000.

And despite EU rules banning gender profiling, men still pay typically lb95 more than women for car insurance.

Louise O'Shea, Confused.com CEO, said: "Finally drivers have experienced some good news with the end of rising auto insurance costs around the corner.

"However, it's clear that lots of motorists are not seeing these savings reflected in their renewal letters, therefore it is more essential than ever to look around when they would like to get a better deal."