Car insurance sees biggest price drop in six years
British motorists are facing the biggest drop in car insurance costs in almost six years, a price comparison website has found. Confused.com says the average cost of car insurance has fallen by £87 in 12 months due to lower risk of accidents.
This comes as average mileage dropped by 43% during the pandemic as driving habits changed. The cost of insurance for men fell by £91, a 14% fall year-on-year, while female drivers are saving £82.
Confused.com’s latest Car Insurance Price Index, in partnership with global insurance broker Willis Towers Watson, tracked six million insurance quotes during the first quarter of 2021. The data showed motorists in the UK can now expect to pay an average of £538 on car insurance for the next year.
Yet if you’ve received your car insurance renewal in the last three months, you might have seen your insurance premium go up by an average of £45 – an amount derived from the insurance quotes tracked.
The price comparison site says this shows motorists are likely to pay more if they opt to stick with their current insurer. Consumer group Which? says that while it is good news that prices are coming down, this doesn’t necessarily mean that you are guaranteed to get a price reduction on your car insurance quote.
“The reduction in premiums is clearly a reflection in quite a radical change in driver behaviour, and people being on the road less as a result of the pandemic, but in order for consumers to get the best deal on their car insurance, they should spend time on price comparison sites,” said Which?’s head of money Gareth Shaw.
He added that the quote an insurer gives you depends on a set of personalised circumstances, including the type of car you drive, where you live, your driving history, your no-claims bonuses, the technology that might be in your car, the age of your car, or even your relationship status.
“It might be an option but it really depends on where you are in your contract and whether it’s cost effective to switch,” said Mr Shaw.