A new report released today by the Department of Transport shows that car insurance prices have fallen by 19% between 2002 and 2005.

The report also shows that more young drivers are buying car insurance than ever before – policies taken out by people aged between 17 to 24 years of age jumped by 63%.

Young drivers were shown to be more likely to take more expensive comprehensive policies now, rather than more basic third party insurance cover.

Michael Horan from the Irish Insurance Federation says the economy and market place competition are among the reasons for the drop in prices.