Biggest Drop in Car Insurance Prices in Six Years

According to comparison website Confused.com, British motorists are seeing the biggest drop in car insurance prices in almost six years. This comes as a result of less driving and a lower risk of accidents during the pandemic.

The average cost of car insurance has fallen by £87 in the last year. The cost for men fell by £91, a 14% decrease on the year, while women can see a saving of £82.

Average mileage dropped by 43% as lifestyles and driving habits changed drastically, with people staying home more and being in lockdowns.

Six million insurance quotes were tracked during the first quarter of 2021. The data shows drivers in the UK can now expect to pay an average cost of £538 on car insurance for the next year.

However, this saving is only reflected in new insurance quotes. If you stick with your current insurer, you are likely to pay more. Renewals saw an average increase of £45 on insurance premiums.

Not guaranteed a reduction

Although it is good news that prices are coming down, it doesn’t necessarily mean you are guaranteed a price reduction on your car insurance quote. Time should be spent on price comparison sites to ensure you are getting the best deal available.

The quote consumers receive from an insurer depends on a set of personalised circumstances. This can include, the type of car and its age, location, technology in the car and any adaptations, driving history, no-claims bonuses, or even relationship status.

Before switching, it is worth checking if it’s cost effective. Make sure you don’t incur any penalties if you are tied into a contract.

Thank you for reading Biggest Drop in Car Insurance Prices in Six Years

---