News Published on : 14-Oct-2021 16:31:21

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. 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. 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.