A recent car insurance price index by comparison website Confused.com revealed that the average cost of fully comprehensive car insurance was down 12.5 per cent to just £644 in 2013, when compared to the previous year.
In addition to this, third party, fire and theft premiums were also down by 7.5 per cent to an average of £1,053 in the last quarter of 2013, compared to the same quarter in 2012.
The figures for fully comprehensive insurance policies were actually among the lowest of recent years. In fact, they were down a staggering 25 per cent compared to the second quarter of 2011 when the average policy was an all-time high of £858.
Young men have benefited the most when it comes to attaining a low fully comprehensive insurance policy. This has been attributed to the EU Gender Directive that was introduced last year and forbade insurance companies from using gender as a factor when pricing insurance.
As a result, men aged between 17 and 20 years old have seen their fully comprehensive insurance premiums fall by a staggering 23 per cent over the course of 2013.
Despite the introduction of the Gender Directive, young women aged between 21 and 25 years old have also seen year-on-year falls of around 14 per cent, leading to average insurance premiums of £936 by the end of 2013.
Gemma Stanbury, head of car insurance at Confused.com, warned: "These falling prices are welcome news for motorists; however the latest car insurance price index highlights that price rises could be on the horizon with some males already experiencing price hikes in the last quarter."