Drivers could save £100s by paying annually for their car insurance
New data from Go.Compare car insurance has revealed that drivers who pay for their car insurance policies monthly are paying £200 more across the year on average compared to those who pay annually.*
The comparison website revealed that on average drivers could save around £249 by paying for their policies in one go rather than paying monthly.
|
Date |
Average annual policy cost* |
Average monthly policy cost* |
|
April 2023 |
£357 |
£584 |
|
May 2023 |
£373 |
£603 |
|
June 2023 |
£380 |
£610 |
|
July 2023 |
£405 |
£634 |
|
August 2023 |
£419 |
£636 |
|
September 2023 |
£434 |
£657 |
|
October 2023 |
£447 |
£681 |
|
November 2023 |
£466 |
£692 |
|
December 2023 |
£ 484 |
£750 |
|
January 2024 |
£449 |
£666 |
|
February 2024 |
£438 |
£664 |
|
March 2024 |
£453 |
£685 |
|
April 2024 |
£452 |
£684 |
Recent data from Go.Compare also revealed that the cost of car insurance has stabilised in recent months, although it is still up around £100 compared to the same quarter in 2023.
Tom Banks, car insurance spokesperson for Go.Compare, commented on the findings: “When you choose to pay for an insurance policy monthly rather than in one go, the insurer treats it like a loan and therefore charges interest - this is why the total cost for car insurance premiums is generally higher when split monthly. So, if you can afford to pay all in one go, it could save you some money.
Tom added, “It’s also worth considering exactly when you are purchasing a new policy – our research shows that getting car insurance 26 days ahead of your renewal date could save you an impressive 55% on average, compared to purchasing on the same day.**
“Although the cost of car insurance is stabilising, it is still higher than it was this time last year, so being aware of tips like this is really helpful in terms of keeping costs down. We always recommend doing your research, and using a comparison site is a great way to consider all your options side by side so you can get the right cover at the right price.”
For more top tips on how to get cheaper car insurance visit: https://www.gocompare.com/car-insurance/guide/top-tips-for-cheaper-car-insurance/
Contact Information
Rubie Barker
Notes to editors
-Ends-
Notes to editors
*Based on the median price paid for car insurance policies between April 2023 and April 2024, inclusive. Price paid between £35 and £12000, inclusive.
**Based on Comprehensive Car Sales purchased through Go.Compare between 1 May 2023 and 30 April 2024. Excludes NTUs, Test Quotes and Quotes where no premium was returned. Premiums relate to policies where the customer chooses to pay Annually only. Limited to policies where the proposer was the main driver and was aged 18+. Price Paid between £35 and £12000.
For further information please contact:
Lynsey Walden on lynsey.walden@Gocompare.com, or Kath Chadwick on Kathryn.chadwick@Gocompare.com.
Keep up-to-date with Go.Compare on Twitter; @Go.Compare
About Go.Compare
Go.Compare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.
It does not charge people to use its services and does not accept advertising or sponsored listings, so all product comparisons are unbiased. Go.Compare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.
When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. It is this approach to comparing products that secured the company an invitation to join the British Insurance Brokers’ Association (BIBA) in 2008, and it is still the only comparison site to be a member of this organisation.
Go.Compare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest and works with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.
Go.Compare is part of Future Plc and is authorised and regulated by the Financial Conduct Authority (FCA).
More information can be found here www.Go.Compare.com or here https://www.futureplc.com/brands/.