UK motorists could save around £100 on their car insurance by shopping around as quotes hit their lowest level since 2015. That’s according to price comparison site CompareTheMarket.com, which says the cheapest quotes are now £60 lower than they were 12 months ago.
The comparison site’s research found the average annual insurance premium during the summer months of June to August fell was £71 lower than during the same period in 2020. As a result, the average insurance premium now stands at £631, compared with an average of £702 for the same three-month period in 2020.
That’s despite an increase in traffic over the past few months. As the country was released from the coronavirus lockdowns that saw accident and claim rates tumble, many drivers and industry experts predicted insurance premiums might increase.
However, it seems premiums are going the other way, with the cheapest quotes dropping dramatically compared with those seen 12 months ago. CompareTheMarket.com says the cheapest average premiums quoted have fallen to just £533 this summer – a £60 drop compared with the summer of 2020 and the lowest quarterly average since the summer of 2015.
With the average cheapest quote working out £98 cheaper than the average overall premium, the comparison site reckons those who allow their insurance to auto-renew could be costing themselves around £100. Ursula Gibbs, the director of CompareTheMarket.com, said young drivers were particularly likely to benefit from changing their provider.
"Many motorists will be thrilled that the cost of car insurance has fallen,” she said. “Premiums were expected to increase as traffic, and claims, returned to pre-pandemic levels. Instead, insurers have continued to cut the cost of car insurance for new customers. As the Financial Conduct Authority's new rules that ban loyalty penalties come into force at the start of 2022, insurers may be particularly keen to attract customers from rivals ahead of this deadline.
"Drivers should take advantage of this situation by shopping around for a cheaper deal when their policy ends. Motorists may lose out by choosing to auto-renew their policy if the price given by their insurer is roughly the same or slightly cheaper than last year. Our figures show motorists could save almost £100 by switching to the cheapest premium available. These savings increase to more than £200 for drivers below the age of 25."