Va-va-vroom: latest data reveals car insurance prices have dropped

In its latest report on car insurance prices, Go.Compare car insurance has revealed that the average cost of car insurance is now £437 - 2% less than the previous quarter (£456).* 

The comparison website's new price index shows that the price of car insurance is now the lowest it has been this year - though premiums are still 4% higher on average than they were this time last year, in Q3 2023.

The report found that while comprehensive car insurance averaged at £437, the cheapest type of car insurance was third party, fire & theft (TPFT), which cost just one pound less annually, at £436 on average. Meanwhile, third party only (TPO) insurance, though offering the lowest level of cover is surprisingly expensive, currently averaging £591 – 35% more costly than a comprehensive policy.

Tom Banks, Go.Compare car insurance spokesperson, said: “It is very welcome news to find that car insurance prices have fallen - and we hope to see this continue, as premiums are still 4% higher than they were this time last year.

“One surprising finding from our latest price index is that the more basic car insurance policies might not be as good value for money as you might think - with third party only (TPO) cover actually costing significantly more on average than a comprehensive policy. With this in mind, we would always recommend taking a look at different levels of cover when it comes to renewing your car insurance, as that way you are sure to get the best cover for a great price.”

The report also revealed how car insurance prices vary across the UK - showing that those in Greater London continue to pay the most for car insurance, with premiums costing an average of £632. Meanwhile, people in Wales and the South West of England enjoy the lowest car insurance costs at just £358 - 76% less than those in England’s capital.

For those looking to find cheaper car insurance, Tom Banks suggests, “Knowing the factors affecting the cost of your premium is really useful, as you can then think about any small changes you are able to make - but always remember to be completely honest and up-front with your insurer. Our top tips are:

• Be accurate with your mileage - overestimating your mileage could mean you pay more for your car insurance than you need to. Look at previous years’ mileage and consider your day-to-day car usage to try and guess as accurately as you can.
• Consider getting a black box - insurance policies that track your driving can be less costly, as they give your insurer insights into your level of risk on the road.
• Don’t wait until the last minute - our data shows it’s cheapest to buy a new car insurance policy 26 days before your renewal is due, and doing so could save you 55% compared to buying on your renewal day.**
• Up your security - installing alarms, immobilisers and locking wheel nuts, and telling your insurer you have these measures in place, could help bring down your premium.
• Increase your voluntary excess - choosing a higher voluntary excess could decrease the price of your car insurance, just remember you will have to pay this figure in the event you need to make a claim.
• Consider named drivers carefully - adding an experienced additional driver to your policy can lower the price. However, you must always be honest about who the main driver is, or you’ll invalidate your cover.
• Job descriptions matter - if there are multiple titles you can use to describe your profession accurately, try them all out, as your car premium could vary depending on which you use.”

For more tips on how to get cheaper car insurance, visit: https://www.gocompare.com/car-insurance/guide/top-tips-for-cheaper-car-insurance/

To read the full Car Insurance Index, visit: https://www.gocompare.com/car-insurance/guide/how-much-does-car-insurance-cost/

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