DRIVERS in Newport are paying more for their car insurance than anyone else in Wales.

It's not all bad news for motorists in the city though, as the average cost in the area has fallen by 11 per cent year-on-year.

That’s according to the latest car insurance price index by Confused.com (Q4 2020), powered by Willis Towers Watson.

Based on more than six million quotes per quarter, it’s the most comprehensive new business price index in the UK.

With an average price of £681, the index shows that drivers in Newport are forking out the most for their car insurance.

While motorists in Cardiff are netting the biggest year-on-year saving, with a significant drop in price of £88, slightly more than the £84 drop in Newport.

Louise O’Shea, CEO at Confused.com said: “We’re seeing some of the biggest car insurance savings in Wales for a long while and it couldn’t come at a better time.

"It’s been nearly 12 months since we first went into lockdown and this put so many people in a difficult situation, so I have no doubt this news will be welcomed by so many.

"We’re at home and driving a lot less, it’s only right our car insurance prices should reflect that.

“That said, it’s important to remember that these savings are only being seen by those shopping around.

"We know from our research that insurers are still putting up renewal prices for some drivers.

"Even if the increase is small, please don’t settle for this as there will be an insurer out there willing to offer a better price.

"At Confused.com we’re so certain of this that we’re offering to beat their renewal quote or give them the difference, plus £20.”

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It’s a similar trend across the rest of the UK, where prices fell by £52 on average – the steepest price drop in two years.

The average cost of car insurance in the UK is now £763, making it the lowest prices have been since early 2019.

As the country has lived in lockdown for the majority of the past 12 months, people are driving significantly less, and the data suggests prices may have dropped to reflect this.

Typically, having a lower mileage could mean drivers pay more for their insurance.

For example, a driver with an annual mileage of between 3,000 and 4,000 miles per year would pay £155 more than if they were to drive between 8,000 and 9,000 miles.

This is because a motorist who drives fewer miles could be considered to be less experienced and therefore a higher risk.

However, in the current climate, 60 per cent of UK drivers claim they have been using their car less since being in lockdown, meaning the risk on roads has decreased overall.