Tax rises to offset fall in the cost of motor insurance

Motorists have been driven round the bend over recent years by a relentless rise in the cost of insurance, but the average cost of car insurance fell by £111 in the past 12 months, down 13%, to now sit at £726, according to Confused.com.

- By GRAHAM HISCOTT

Prices have actually been easing for a little while but they are now at the lowest since March 2023.

But before drivers get carried away, there are other increases on the horizon. For starters, many drivers face a rise in road tax - otherwise known as vehicle excise duty - from April. It is set to increase in line with the Retail Price Index measure of inflation.

Electric vehicles are also no longer exempt.