Auto insurance prices at seven-year low as driving levels stagnate under lockdown

Motorists face the lowest auto insurance prices since 2014 due to reduced traffic on the roads during coronavirus closures, new research shows.

Data SilverSuperMarket shows that the average cost of full car insurance in the UK was £ 417.06 in the first quarter of this year, down £ 73.32 from the fourth quarter of 2020.

Every nation and region in the UK has seen cuts, the largest in the West Midlands, where premiums have fallen by more than £ 100 quarter on quarter.

London remains the most expensive place to insure a car, averaging over £ 600.

In terms of age groups, teenage drivers benefited the most with a drop of almost £ 300 (37%) on average for full coverage.

Insurance for 20-24 year olds remains the most expensive at £ 870.78 on average, although it has fallen by more than £ 100 since the last quarter.

Average cost of fully comprehensive auto insurance in the first quarter by zone

  • West Midlands – £ 480.63 (-17%)
  • North West – £ 486.65 (-15%)
  • North East – £ 379.68 (-15%)
  • East Midlands – £ 397.53 (-15%)
  • Yorkshire and the Humber – £ 449.71 (-15%)
  • Wales – £ 339.75 (-14%)
  • Scotland – £ 324.31 (-14%)
  • East of England – £ 368.05 (-14%)
  • South East – £ 351.70 (-14%)
  • London – £ 607.73 (-12%)
  • South West – £ 291.08 (-12%)
  • Northern Ireland – £ 435.49 (-8%)
  • Jersey, Guernsey and the Isle of Man – £ 276.25 (-7%)

auto insurance spokesperson for SilverSuperMarket, Andy Teasdale, said: “Our research shows that prices have fallen significantly in the first three months of this year, with the decline in average premiums being the largest in the eight years that we have been tracking prices.

“A trend that we can attribute to car owners driving fewer miles during the pandemic.

“Increased competition for sales is pushing insurers to lower their premiums because fewer claims mean insurance is more profitable and therefore suppliers can lower prices and pass this benefit on to customers.

1. Is there a discount for some security features?

So it all adds up by telling your broker that you have an alarm, an immobilizer or if your car is kept in a garage, it should make a difference.

2. Is there a discount for having more than one policy with the same provider?

The more policies you have with your insurance company, the more money you could save in many cases. So ask your insurer if you are entitled to discounts.

3. Will adding another driver to my household reduce costs?

In many cases, the rate of an insured driver combined with a spouse or partner is lower than that of a single insured driver. So adding a driver to your household could make it cheaper.

4. Can a family insure two or more cars from the same supplier at a reduced price?

A number of insurance companies offer discounts on the second car – so if there are two or more cars in the family, get them both from the same insurer.

5. What is the price of a complete product compared to a third party?

Enter your details in to see how much your insurance would cost.

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“It’s great to see these savings being passed on to customers, but the bubble is likely to burst at some point as the lockdown loosens and driving – along with accidents and claims – starts to rise again. .

“The latest view is that restrictions will be relaxed by the end of June this year [in England] and many people will return to work.

“It is not known how many of those who have worked from home in the past year will potentially reduce their time in the workplace.

“If there is a significant change, it could mean that we can enjoy lower premiums for longer.

“If your policy needs to be renewed, the best way to make sure you’re getting the right policy for your needs and at the right price is to always look for a better deal, as this can save you up to £ 2,172.

“Start looking for new policy prices one month before the renewal date, as committing to a purchase within the 15-28 day window before the renewal date could save you an average of 17% compared to a renewal one. day before the start of your new policy. . “

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