Auto insurance: cheapest coverage drops to lowest level in six years, despite pre-pandemic traffic levels
The cheapest car insurance premiums have fallen on average to £ 533 over the summer, so drivers could save an average of £ 98 by auto-renewing instead of switching to another offer. This is the lowest quarterly average of the cheapest premiums available since summer 2015.
Ursula Gibbs, director of comparethemarket.com, said: “Many motorists will be delighted that the cost of auto insurance has come down.
“Premiums were expected to increase as traffic and claims returned to pre-pandemic levels.
“Instead, insurers have continued to reduce the cost of auto insurance for new customers.
“As new FCA rules prohibiting loyalty penalties take effect in early 2022, insurers may be particularly keen to attract customers from competitors before that deadline.
Younger motorists can benefit from the biggest savings, with the average premium for drivers under 25 falling to £ 1,085.
This is compared to £ 1,134 in the same three months (June to August) in 2020.
When young drivers are looking for the cheapest average deal, they can usually save £ 201 on their car insurance.
There are other benefits for young drivers, as the overall cost of driving has fallen by more than £ 1,000 since 2019.
The combined cost of a new motorist learning to drive, buying, taxing and then insuring their first car has dropped significantly.
Much of the decline was attributed to younger drivers spending less on their first car purchase.
In 2019, young drivers spent an average of £ 6,846 on the road, up from £ 5,703 in 2021, according to GoCompare.