Drivers needing to renew their car insurance early in the New Year should take advantage of a recent fall in prices by shopping around for cover.
New data shows that premiums are at their lowest level in winter for five years.
Compared to this time last year, the average cost of a policy is down £24 at £707, while the average cheapest premium stands at £603.
Fewer journeys: More people working from home and fewer journeys made by car because of coronavirus restrictions have reduced claims
A typical winter spike in premiums has not occurred this year according to comparison website Comparethemarket. More people working from home and fewer journeys made by car because of coronavirus restrictions have reduced claims.
Dan Hutson, head of motor insurance at the website, says: ‘Cheaper premiums this winter are a silver lining for motorists – at a time when household budgets continue to be strained.’
But Hutson warns that as Covid-19 vaccines are rolled out and the economy picks up, cars will return to the road and premiums will rise again.
He adds: ‘Switching to a cheaper deal continues to be the best way to cut the cost of car insurance.’
The website’s experts also say that switching three weeks in advance of a policy ending can save more money compared to waiting for the renewal date. The average difference between quotes three weeks in advance and on the day of renewal is nearly £394.
Meanwhile, anyone who can pay upfront for insurance will find it cheaper. Research by insurance provider Cuvva has revealed that customers who pay monthly, rather than annually, pay significantly more overall. The extra, it says, is equivalent to a borrowing cost of up to 39 per cent a year.
Further help on buying car insurance is available from the British Insurance Brokers’ Association at biba.org.uk or by calling 0370 950 1790.
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