Car insurance prices fall to five-year low

Although the cost of car insurance went up in the first quarter of 2020, April figures show a reversal in the trend – with prices the lowest in five years.

car insurance quote

The price of car insurance has fallen to its lowest level in five years. That’s according to new research published this week.

Although the year-on-year cost of a fully comprehensive policy increased in the first quarter, data from April shows a steep decline. A policy in Q1 (January to March) cost £485, but had fallen to £462 by the end of April.

Prices fluctuated during 2019, starting the year at £480, then rising and falling, before settling at £503 by the end of the year.

RAC data shows the volume of vehicles on the road had fallen by 40 percent by the second week of the lockdown. This has led to speculation that insurance companies will reduce premiums in the second half of 2020.

Last month, Admiral announced that it was refunding policyholders to the tune of £25.

There are still regional price variations in the UK. For example, a customer in East London is likely to pay an average of £986 for cover, while somebody in Llandrindod Wells will pay just £300. 

Insurance is also three times more expensive for drivers under 25 than it is for motorists over the age of 50. Drivers aged 65 or over pay £289 on average.

‘Don’t let your policy automatically renew’

Best car insurance companies

Dave Merrick, car insurance spokesman at MoneySuperMarket, said: “Our research shows car insurance premiums in the first quarter of 2020 increased marginally year on year. This is partly attributable to price rises in the final quarter of 2019 in response to a change in the discount rate – a figure applied to large personal injury compensation claims – which triggered premium inflation.

“But our latest research shows that April’s prices are at their lowest levels in five years. Whether there’s any link to the coronavirus crisis is difficult to say for certain, but it is likely to be a factor. An unintended consequence of the lockdown has been fewer cars on the roads and fewer accidents, so it’s fair to assume that this could result in reduced prices.

“Whatever happens to premiums in the coming months, make sure you don’t let your policy automatically renew as you’ll likely see your costs increase. Always switch your provider before your policy renews – doing so can save you up to £270.”

Top 10 most expensive locations for car insurance

[av_table purpose=’pricing’ pricing_table_design=’avia_pricing_default’ pricing_hidden_cells=” caption=” responsive_styling=’avia_responsive_table’ id=” custom_class=” av_uid=’av-2fczuidlp’] [av_row row_style=’avia-heading-row’ av_uid=’av-2dnva0sil’][av_cell col_style=” av_uid=’av-2csg2feql’]Location[/av_cell][av_cell col_style=” av_uid=’av-2bpkxrsyl’]Q1 2020 cost[/av_cell][/av_row] [av_row row_style=” av_uid=’av-2apee3o0t’][av_cell col_style=” av_uid=’av-299fff5ct’]1. East London[/av_cell][av_cell col_style=” av_uid=’av-288vzcwkd’]£986[/av_cell][/av_row] [av_row row_style=” av_uid=’av-26n9xhd99′][av_cell col_style=” av_uid=’av-25jn6jv8d’]2. Ilford and Barking[/av_cell][av_cell col_style=” av_uid=’av-244cp0vvh’]£900[/av_cell][/av_row] [av_row row_style=” av_uid=’av-2298guue5′][av_cell col_style=” av_uid=’av-20x2xqgrh’]3. North West London[/av_cell][av_cell col_style=” av_uid=’av-79dqs02l’]£887[/av_cell][/av_row] [av_row row_style=” av_uid=’av-1yva2vffh’][av_cell col_style=” av_uid=’av-1xdja1pp9′]4. Southall and Uxbridge[/av_cell][av_cell col_style=” av_uid=’av-1we8bji71′]£858[/av_cell][/av_row] [av_row row_style=” av_uid=’av-1uqcekafx’][av_cell col_style=” av_uid=’av-1t7vn00yl’]5. North London[/av_cell][av_cell col_style=” av_uid=’av-1sjggwqfx’]£825[/av_cell][/av_row] [av_row row_style=” av_uid=’av-1qrjcjnbx’][av_cell col_style=” av_uid=’av-1ppue3e59′]6. Harrow[/av_cell][av_cell col_style=” av_uid=’av-1p0l4f6n1′]£762[/av_cell][/av_row] [av_row row_style=” av_uid=’av-1mz2on8f1′][av_cell col_style=” av_uid=’av-1mmi19599′]7. Bradford[/av_cell][av_cell col_style=” av_uid=’av-1l3l282xp’]£760[/av_cell][/av_row] [av_row row_style=” av_uid=’av-1jwiruk0t’][av_cell col_style=” av_uid=’av-1hymtkorh’]8. South East London[/av_cell][av_cell col_style=” av_uid=’av-1gn1spt99′]£752[/av_cell][/av_row] [av_row row_style=” av_uid=’av-1fs34hwf1′][av_cell col_style=” av_uid=’av-51ymhmcd’]9. Manchester[/av_cell][av_cell col_style=” av_uid=’av-1d4j6o199′]£746[/av_cell][/av_row] [av_row row_style=” av_uid=’av-1c90nzyhp’][av_cell col_style=” av_uid=’av-1b5jjhu59′]10. London West End[/av_cell][av_cell col_style=” av_uid=’av-199k22jbx’]£740[/av_cell][/av_row] [/av_table]

Top ten least expensive locations for car insurance

[av_table purpose=’pricing’ pricing_table_design=’avia_pricing_default’ pricing_hidden_cells=” caption=” responsive_styling=’avia_responsive_table’ id=” custom_class=” av_uid=’av-189b13dnh’] [av_row row_style=’avia-heading-row’ av_uid=’av-177dn01y5′][av_cell col_style=” av_uid=’av-1634ed17h’]Location[/av_cell][av_cell col_style=” av_uid=’av-14ffle7kt’]Q1 2020 cost[/av_cell][/av_row] [av_row row_style=” av_uid=’av-12j95wuot’][av_cell col_style=” av_uid=’av-11buh082l’]1. Llandrindod Wells[/av_cell][av_cell col_style=” av_uid=’av-104fs3lgd’]£300[/av_cell][/av_row] [av_row row_style=” av_uid=’av-cs9zrrx’][av_cell col_style=” av_uid=’av-y6cjv00t’]2. Kirkwall[/av_cell][av_cell col_style=” av_uid=’av-w3y1247x’]£302[/av_cell][/av_row] [av_row row_style=” av_uid=’av-v9ge2ogt’][av_cell col_style=” av_uid=’av-2zfsw199′]3. Dorchester[/av_cell][av_cell col_style=” av_uid=’av-spp21a3h’]£303[/av_cell][/av_row] [av_row row_style=” av_uid=’av-rlvuwq59′][av_cell col_style=” av_uid=’av-qdqdhvj1′]4. Exeter[/av_cell][av_cell col_style=” av_uid=’av-2j41ahr1′]£306[/av_cell][/av_row] [av_row row_style=” av_uid=’av-n5louv6l’][av_cell col_style=” av_uid=’av-lwwiy6ot’]5. Truro[/av_cell][av_cell col_style=” av_uid=’av-kta3xcrh’]£306[/av_cell][/av_row] [av_row row_style=” av_uid=’av-jnbchtnh’][av_cell col_style=” av_uid=’av-irj2jzz1′]6. Torquay[/av_cell][av_cell col_style=” av_uid=’av-grhpxhlp’]£311[/av_cell][/av_row] [av_row row_style=” av_uid=’av-gix48xgd’][av_cell col_style=” av_uid=’av-f5vc5a71′]7. Dumfries and Galloway[/av_cell][av_cell col_style=” av_uid=’av-d783i6sd’]£313[/av_cell][/av_row] [av_row row_style=” av_uid=’av-cm9yfxlp’][av_cell col_style=” av_uid=’av-12k2hgt9′]8. Inverness[/av_cell][av_cell col_style=” av_uid=’av-9pbt7lgd’]£314[/av_cell][/av_row] [av_row row_style=” av_uid=’av-8270n9st’][av_cell col_style=” av_uid=’av-7dn7ulwd’]9. Taunton[/av_cell][av_cell col_style=” av_uid=’av-5ytfnfj1′]£318[/av_cell][/av_row] [av_row row_style=” av_uid=’av-53ot3gwt’][av_cell col_style=” av_uid=’av-31bxtxlp’]10. Galashiels[/av_cell][av_cell col_style=” av_uid=’av-299ybw0t’]£319[/av_cell][/av_row] [/av_table]

Click here to find out how to save money on your car insurance.

ALSO READ

Revealed: the most expensive place to run a car

Belfast is the safest city for van drivers

Nearly a third of drivers have had a car written off

Related Articles

Gavin Braithwaite-Smith
Gavin Braithwaite-Smithhttp://www.petrolblog.com
Writer with a penchant for #FrenchTat. Owns 15 vehicles of varying degrees of terribleness. Also doing a passable impression of Cousin Eddie in an Italian-German beige motorhome. Doesn't get out much.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

FIRST PHOTOS: new electric Jaguar prototype hits the road

This is our first look at Jaguar's new electric four-door GT car, due to arrive in 2025. Here's what we know so far.

A luxurious Caterham? New Seven CSR Twenty targets UK and US buyers

Celebrating 20 years of Caterham’s CSR chassis, only 20 Seven CSR Twenty editions will be produced for the UK, plus a further 20 for the USA.

Tesla is rated the UK’s best EV charging network

The latest Zapmap satisfaction survey ranks the best electric car charging networks in the UK, based on real driver feedback.

Two thirds of home workers miss the daily commute

The majority of those now working from home admit they miss the time previously spent on a regular commute to the office.