Car insurance costs are starting to fall – but drivers are still typically paying £100 more for cover compared to 2023.
According to GoCompare, the average annual car insurance premium stood at £447 in Q2 2024, down from £465 in Q1. This time last year, the average policy cost £343.
Across the UK, the data found that drivers in London have the highest premiums, at an average cost of £650. This means that London drivers are paying 78% more on average than those in Wales and the South West.
The price comparison website also analysed how drivers’ jobs impact how much they pay for cover. Administration assistants had the average cheapest quote at £490, while civil servants typically pay £492 and shop assistants £525. However, retirees typically pay the least for cover, at £389 per year on average.
Tom Banks, motoring expert at GoCompare, said: “It’s an encouraging sign to see that car insurance premiums have started to decrease. With the recent price rises hitting headlines, the cost of car insurance has been a hot topic – so this is news that will be welcomed by many.
“However, while it’s good news that premiums are starting to stabilise, the current cost of car insurance is still £100 more on average than it was this time last year. This means it’s more important than ever for policyholders to get the best deal. We always recommend taking some time to shop around well in advance of your renewal and consider all your options in order to get the best cover for less.”
How to reduce car insurance costs
Renew early
Don’t leave it until the last minute to renew your premium. GoCompare data shows that the best time to renew your car insurance is 26 days before your renewal is due. Generally, the longer you leave it to renew, the more you are likely to pay.
Pay annually
If you can, pay for your insurance policy all in one go rather than monthly. This will save you money, as this helps you avoid interest and additional fees.
Only pay for what you need
Opting for add-ons that you don’t need could hike up your premium without any added benefit to you, so always read the policy wording carefully and only pay for what you need.
Pick the right car
If you’re thinking about buying a new car, then it might be worth considering how much it will cost to insure. Smaller, less powerful cars are usually cheaper to insure – so, check a car’s insurance group before making a decision.
Related: Car insurance premiums rise by a fifth as drivers warned about ‘essentials’ cover
