‘Drivers should take advantage’: The cost of the cheapest auto insurance policy has dropped to a six-year low.
Despite millions of people returning to the road after the lockdown, the cheapest average auto insurance prices have dropped to a six-year low.
Over the summer, the cheapest car insurance rates decreased to £533 on average, saving consumers an average of £98 by auto-renewing rather than switching to another package. Since summer 2015, this is the lowest quarterly average for the cheapest premiums offered.
During the summer months, average yearly auto insurance premiums declined by £71 year on year to £631. (June to August).
In comparison, the average for the same three-month period in 2020 was £702.
Traffic has reverted to pre-pandemic levels, according to data from the Department of Transportation.
In August, compared to February 2020, road traffic levels had returned, with car use back to 98 percent.
Because there were fewer cars on the road and fewer claims during each lockdown since March 2020, the cost of car insurance has decreased.
Insurers had utilized the savings from fewer claims to give clients lower premiums.
The average car insurance rate, on the other hand, has dropped in recent months, from £644 in June to £617 in August.
Insurers may be competing more fiercely to recruit new clients, as evidenced by the recent drop in premiums.
“Many motorists will be happy that the cost of auto insurance has reduced,” said Ursula Gibbs, director at comparethemarket.com.
“As traffic and claims returned to pre-pandemic levels, premiums were likely to rise.
“Instead, insurers have continued to lower auto insurance premiums for new clients.
“With the FCA’s new rules prohibiting loyalty fines set to take effect at the start of 2022, insurers may be especially eager to entice consumers away from competitors before the deadline.”
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“When their coverage expires, drivers should take advantage of this circumstance by shopping around for a better bargain.”
“If the price offered by their insurer is roughly the same or somewhat cheaper than last year, motorists may lose money by electing to auto-renew their insurance.”
“According to our calculations, switching to the cheapest premium offered may save motorists about £100.”
“For drivers under the age of 25, these savings rise to more than £200.”
The greatest savings are available to young drivers. “Brinkwire News Summary.”