Car insurance premiums fall to £629 – the lowest price since 2015

Car insurance premiums have plummeted to £629 in the last three months, new research has revealed.

This is the cheapest quarterly average since summer 2015, when cover typically came in at £606, according to Compare the Market.

This six-year low is £24 cheaper than winter 2020 and a £126 reverse compared to before pandemic restrictions were introduced last March.

Car insurance premiums have fallen to £629 between April and June this year, data shows

The cheapest premium typically available between April and June in 2021 has also decreased to £536, dropping from £595 in the same period last year.  

This fall means there are still considerable savings available to motorists who shop around for the best price when their policy comes to an end.

In fact, it is estimated that drivers can save an average of £92 on their car insurance by switching to the cheapest premium available.

The cost of car insurance has sunk in the past 12 months in part due to the significant drop in car insurance claims during successive lockdowns.

Insurers have been offering particularly competitive prices, with the low numbers of new car sales at the start of the year and the postponing of driving tests resulting in fewer new customers in the market.

However, the data found young drivers can make the greatest savings from shopping around for car insurance.

The average premium for drivers aged under 25 has decreased to £1,093, down from £1,155 in the same quarter of 2020.

Drivers could save £92 on their car insurance by switching to the cheapest premium available

However, if a younger motorist switches to the cheapest deal when their premium comes up for renewal, they could save a huge £191 on their car insurance.

Despite the lower premiums seen this year, motorists should be aware the cost of car insurance could rise in the coming months.

The average premium has already increased by £47 between March and May 2021.

As further restrictions are lifted, the number of car journeys could increase which insurers are likely to anticipate will lead to more car insurance claims. 

The increase in claims will cause the cost of premiums to accelerate back to pre-pandemic prices.

Dan Hutson, head of motor insurance at Compare the Market, said: ‘Motorists will be relieved that car insurance premiums have once again fallen since household finances have been under pressure from both the pandemic and the prospect of rising inflation.

‘For those looking to reduce their premiums further, switching insurer is a quick and easy way to reduce the cost when your policy comes up for renewal, especially for younger motorists. 

‘Drivers may want to think about switching early to lock in a lower premium if they are not too far from their renewal date. 

‘But they do need to be careful to check any penalty charges for switching early don’t outweigh the potential savings from switching.’

This post first appeared on Dailymail.co.uk