blank
Connect with us

Money

Cheapest car insurance falls to six month low despite return of traffic

Published

on

woman in yellow shirt driving a silver car

The cheapest average premiums quoted have tumbled over the summer to just £533 – a £60 drop year-on-year.

This is the lowest quarterly average for cheapest premiums available since summer 2015.

Advertisement

The fall in the cheapest average premiums has driven up savings available to motorists. Drivers can save an average of £98 on their car insurance by switching to the cheapest deal when their policy expires. 

The average annual car insurance premium declined by £71 year-on-year across the summer months (June – August), according to the latest Premium Drivers research from comparethemarket.com.

The average premium now stands at £631, compared with an average of £702 for the same three-month period in 2020. 

In each lockdown since March 2020, the cost of car insurance had fallen due to fewer cars being on the road and a subsequent drop in claims. Insurers had used savings from fewer claims to offer lower premiums to customers. However, the average motor insurance premium has also declined in recent months, from £644 in June 21 to £617 in August 21.

The fall in premiums over the past three months is surprising, as more Covid-19 travel curbs were relaxed and road traffic increased in this time. In fact, road traffic has reverted to pre-pandemic levels with car use returning to 98% of its February 2020 level, on average in August 2021, according to figures from the Department of Transport1. This more recent fall in premiums suggests insurers may be competing more aggressively to attract new customers.  

Advertisement

Young motorists can benefit from the greatest savings by switching car insurance. The average premium for drivers aged under 25 has decreased to £1,085, falling from £1,134 in the same three months (June – August) in 2020.

If young drivers shop around for the cheapest deal on average when their policies come up for renewal, they could typically save £201 on their car insurance. 

Lead image: Andrea Piacquadio / Pexels.com)

Advertisement
Click to comment

Leave a Reply

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

Trending

Copyright © 2022 Swansea Bay News