24 September 2012 / by Rachael Stiles
The national average cost of car insurance is 10% cheaper than it was this time last year, according to a study of 16 million car insurance quotes obtained through Moneysupermarket.com.
Recent years have seen car insurance premiums rising sharply, but the new research finds that drivers in all regions of the UK are now paying less than they were 12 months ago. The national average is now £478 according to the comparison website – down from a peak of £554 in April 2011.
Kevin Pratt of Moneysupermarket.com points to competition as a potential reason for the fall in cost of car insurance; prices are being pushed down by a few major insurance companies that have lowered their prices to attract new customers.
But Mr Pratt urges motorists to get a quote now if their car insurance is up for renewal soon, because the cheaper prices will not necessarily continue.
“Although our analysis shows that prices appear to still be falling for motorists, there are no guarantees that this downward trend will continue,” he said. “I urge those who receive their car insurance renewal soon to act quickly to benefit from the lower car insurance prices being offered.
“Shopping around for cover around 30-40 days before your premium expires may make a real difference to the price you’re quoted. Compare prices in order to get the best saving on a policy that suits your needs.”