Car insurance premiums drop again to an average annual cost of £429 as motorists continue to benefit from fewer claims
- The average cost of comprehensive car insurance is £40 cheaper than last year
- Premiums for the July-September quarter were £429
- This is the lowest quarterly average since the beginning of 2016
- Can you find a better deal? Check using our market comparison partner
New data from an industry body showed car insurance premiums fell further to £429, remaining at their lowest level in five years.
The average annual cost of comprehensive car insurance is now £40 cheaper than last year and £45 less than in the first three months of 2020, before the pandemic.
The data covers July to September, and is the cheapest quarterly average since the start of 2016, when coverage also came in at £429, according to the Association of British Insurers.
Cheaper car coverage: Car insurance premiums down to £429
The cost of auto insurance has fallen over the past year, in part due to a significant drop in auto insurance claims during successive shutdowns and fewer vehicles on the road.
“Motorists continue to see the benefits of fewer claims being made during pandemic lockdowns,” said Laura Hughes, director of general insurance at ABI.
Motorists should soon have access to fairer prices as part of new rules put in place by the FSA to crack down on the so-called “loyalty penalty”.
From January, auto and home insurers will not be able to charge existing customers more than new consumers.
Hopefully, the changes will stop existing customers who don’t want to switch insurance providers from getting theft.
The regulator estimates that its measures will save consumers £4.2 billion over 10 years as a result.
Hughes added: “While the coming year will see some significant changes in how auto insurance is priced with the introduction of pricing reforms, and cost pressures continuing around repair costs, the market will remain competitive, so it will still pay motorists to shop for it. The best deal for their needs.
Motorists looking to save on their car insurance must renew their policy within three to four weeks before it expires in order to get the best deal, according to a recent analysis of comparison site data.
This sweet spot can save hundreds in renewal costs, instead of having to pay the potential fine for automatic renewal or have it left at the last minute.
Can you save on car insurance?
Drivers can save hundreds on their car insurance each year just by comparing prices online.
Using comparison sites like this is Money partner, Compare the Market, will let you see if you can cut costs by switching provider.
Motorists can also use quotes to negotiate with their current insurance company.
To see if you can save today, visit this is Money partner, compare market.