Lowest car insurance prices in 7 years

A young driver looking happy

April 19, 2021

A recent study has revealed that the average cost of car insurance has plunged to its lowest point since 2014.

MoneySuperMarket’s comparison of historical comprehensive insurance data revealed that the cost of car insurance fell by £73.32 in the first quarter of this year. That fall in price is the largest quarterly drop since the price comparison site began its analysis of car cover data in 2013.

This significant drop in price means the average cost of a fully comp car insurance policy is now £417.06. That’s a whopping £164.71 less than when costs peaked at £581.77 in the last quarter of 2016.

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What UK locations are seeing the cheapest/most expensive prices?

Generally, demographics heavily influence the cost of car insurance in the UK.

Whilst the Crown territories of Guernsey, Jersey and the Isle of Man saw the smallest drop in price (17%), they continue to enjoy the cheapest car insurance with the average policy costing only £276.25.

At the other end of the scale is London, where the average car insurance policy costs drivers a bank-breaking £607.73.

It’s predominantly the Midlands and the UK’s northern regions who have benefited the most from this recent price fall, while some regions have fared better than others.

Biggest car insurance price drop by UK region

West Midlands
North West
North East
East Midlands
Yorkshire & The Humber
Jersey, Guernsey & The Isle of Man
17% 15% 15% 15% 15% 7%


It’s not just location that influences the cost of insurance; age has a huge impact too.

Young drivers have seen the biggest price drop of 37% meaning that a comprehensive policy for 17- and 19-year-olds now costs an average of £504.85.

Over-65s remain the cheapest age group to insure with an average premium costing only £258.23, less than one-third of the average premium paid by drivers aged 20-24 (£870.78). So there are some benefits to getting older!

Why has car insurance gone down?

Insurance industry experts feel that the sharp drop in car insurance prices is primarily the result of coronavirus pandemic lockdowns, coupled with competitiveness amongst insurers.

Three Covid-19 lockdowns have meant there have been fewer drivers on the road causing fewer accidents and many insurers have offered discounts for housebound policyholders doing fewer miles.

Will car insurance go up in the future?

Yes, it’s anticipated that car insurance premiums will imminently rise now we’re coming out of another lockdown. Less travelling restrictions will inevitably lead to more drivers on the road and more accidents as a result, driving up insurance costs again.

To get cheap car insurance, make sure your car isn’t too expensive to insure and cancel your auto-renewal. You’ll get much cheaper car insurance if you shop around to get a quote from elsewhere, precisely 21 days before your policy renewal date.

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How to cancel your car insurance auto renewal

Some insurers make it notoriously difficult for drivers to cancel their auto-renewal, usually because they sting customers with what’s known as a loyalty tax.

This oxymoronic loyalty tax means millions of unwitting drivers who let their insurance auto-renew are effectively taxed for their loyal custom. This loyalty tax brings in an additional, collective revenue of £1.9bn a year for greedy insurers and is exactly the reason why they don’t want you to cancel it easily. 

Online account or app

If you use an online account to manage your car insurance policy, this would obviously be your first port of call when you go to cancel your car insurance renewal. But some insurers, Hastings Direct being one of them, do not allow their loyal customers to simply cancel renewal this way. They instead insist that you telephone them to cancel and due to staff limitations owing to the covid-19 pandemic, you can very often be cut off and told they’re too busy to take your call. Hmph!

Telephone

If you can’t cancel auto renewal via your app or online account, try to call customer services and hopefully, someone will be able to help you.

Social Media

If you can’t get through on the phone, then try to contact them (publicly if possible!) via social media.

Online chat or email

If that doesn’t work try online chat or send an email form request via their website (if there is such an option in a world where customer service means you can’t get hold of anyone!).
 
Make sure you tell your insurer as soon as possible that you do not wish to ‘opt in’ for auto-renewal so you can go ahead and shop around for new quotes without having the hassle of cancelling near to your renewal date.

If your policy auto-renews before you manage to cancel it, remember you have a 14-day cooling-off period in which to cancel your policy.

So get cancelling that auto-renewal and get a great insurance deal today by comparing quotes with us online now.

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