Car insurance prices drop to two year low

The latest price index from Go.Compare Car insurance has revealed that the average cost of a car insurance policy has decreased by 7% and is now at the lowest it’s been since early 2023.

The price index, which has been published this week, found that the type of policy you buy can have a significant impact on the price you pay. According to the latest figures, the cheapest premium available is a third party fire and theft policy at £408** but for £10 more (£418), a comprehensive policy will provide the highest level of cover. In addition, a Third Party Only (TPO) insurance policy may offer the lowest level of cover but it is still the most expensive, with a policy costing an average of £559 – 37% more expensive than a comprehensive policy.

As well as the type of policy you buy, the cost of your car insurance can also be influenced by your location – for example, if you live in London, the Index shows that car insurance will cost on average £598 a year, around 74% more expensive than Wales, where the median cost is £343.  This price difference is often down to the fact that if you live in London, there’s an increased risk of your car being damaged or stolen, and there’s also a greater chance that you’ll need to park your car on the street, rather than safely locked away in a garage. 

Elsewhere in the Index, the data looks at how a motorist’s occupation can influence the price you pay – it found that the cheapest professions to insure include postmen, gardeners and medical secretaries.  The top 10 cheapest professions according to the Index are as follows:

Tom Banks, car insurance spokesperson for Go.Compare Car insurance, commented on the latest figures, “It’s great to see that car insurance prices have dropped – and while there has been some fluctuation in recent months, the general trend appears to be downward, which will be good news for motorists.

“Insurance is a significant cost for anyone with a car, so trying to get a good deal and not overpaying for your cover is really important – no one wants to pay more for their insurance than they have to. That said, ensuring the cover is right for your requirements is just as important. This is why it’s good to understand the factors that affect the price you pay – some will be fixed – i.e. your age and where you live - but there are things you can do to keep costs down. For example, shopping around at renewal is still the best way to save money – accepting the first quote you’re given doesn’t necessarily mean you have the best deal. In fact, it rarely does. 

“There are over 100 insurance providers on the larger comparison sites, who all have different prices and levels of cover so accepting the first price you’re given is unlikely to be the best one. It doesn’t take long to compare policies using a comparison site and you could save a significant amount of money on your insurance costs.”

For more tips on how to save money on your car insurance policy, visit here: https://www.gocompare.com/car-insurance/guide/top-tips-for-cheaper-car-insurance/ 

To read the full report on the cost of car insurance visit here: https://www.gocompare.com/car-insurance/guide/how-much-does-car-insurance-cost/ 

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