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Here’s some good news, especially for drivers who are struggling with hefty car bills. Amazingly, car insurance premiums have been dropping at a record rate over the last few months. Insurance premiums have fallen amidst clampdowns on fraudulent claims such as whiplash, other illnesses, EU Gender Directive, location, changes to no-win no-fee lawyers, and types of cars.

The rise and fall of insurance premiums

According to the latest figures, motorists are saving more than £90 per annum. In accordance with the AA, insurance premiums dropped by 12.5 per cent during last year.

For example, a £600 insurance deal during January 2013 would have cost only £510 or less in January 2014. Naturally, it depends upon your location and what car you are driving as to how much you need to pay.

London is a high-risk area, so unsurprisingly insurance premiums will be the most expensive. One of the biggest drops is Central Scotland; they hold a whopping record of 16.6 per cent. Second is Merseyside with a 16 per cent drop. East and North East of Scotland enjoy 13.9 per cent and the North West of England is 13.7 per cent.

Prior to the no-win no-fee lawyers, motorists did not have to pay any fees if they won their accident case. Today, this conditional fee has changed as motorists now pay fees out of their own funds if they win. This system has significantly reduced motorists making accident claims. Furthermore, the change to the no-win no-fee was one of the major reasons for the insurance price drop.

However, during April 2013 men and women's insurance premiums became equal. This gender directive also helped the insurance drop. The other factor that helped the drop where the fraudulent whiplash clampdown, for which Britain had become the capital of Europe for faking the most claims.

In theory, the fall of insurance premiums looks wonderful, but they are still higher today than 2007. Seven years ago, premiums were half the cost compared to now, even with the 2013 dip.

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