Car insurance costs at lowest winter level in five years thanks to fewer claims as the British travel less during the pandemic
- There was no typical winter increase in premiums this year
- The average cost of a policy is down by £ 24 over the past year to £ 707
- Research has found the average cheapest premium to be £ 603
Motorists who need to renew their car insurance at the beginning of the new year should take advantage of the recent price drop by seeking coverage.
New data shows that winter premiums have been at their lowest level in five years.
Compared to that time last year, the average cost of a policy has dropped by £ 24 to £ 707, while the average cheapest premium is £ 603.
Fewer trips: More people working from home and fewer car trips due to coronavirus restrictions have fewer entitlements
According to the comparison website Comparethemarket, there was no typical increase in winter premiums this year.
More people working from home and fewer car trips due to coronavirus restrictions have reduced entitlements.
Dan Hutson, head of auto insurance on the site, says, “Cheaper premiums this winter are a silver lining for motorists – at a time when household budgets remain tight.”
But Hutson warns that with the introduction of Covid-19 vaccines and the recovery in the economy, cars will return to the streets and premiums will rise again.
He adds, “Moving to a cheaper offer is still the best way to cut car insurance costs.”
The site’s experts also say that switching three weeks before a policy expires can save more money than waiting for the renewal date. The average difference between offers three weeks in advance and on the day of renewal is almost £ 394.
In the meantime, anyone who can pay for insurance upfront will find it cheaper. Studies by the insurer Cuvva have shown that customers who pay monthly and not annually pay significantly more overall. The extra, it is said, corresponds to a loan expense of up to 39 percent per year.
For more help buying car insurance, please contact the British Insurance Brokers’ Association at biba.org.uk or by calling 0370 950 1790.
Compare home insurance, car insurance, and travel insurance
Beat the renewal blues and compare the best deals on home, car, travel, pet, motorcycle, and van insurance with This is Money’s partner, Compare the Market.
Could You Save Hundreds of Pounds a Year? Use the tool to check.
>> Check if you can save money now