Car insurance prices fall to lowest level since 2014 – younger drivers saving £300

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Car insurance prices fall to lowest level since 2014 – younger drivers saving £300

Experts say having fewer drivers on the road has led to less competition for insurance sales, causing firms to offer lower premiums to customers. A

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Experts say having fewer drivers on the road has led to less competition for insurance sales, causing firms to offer lower premiums to customers. Average pieces for fully comprehensive insurance fell by £73.32 in the first quarter of 2021, representing the biggest quarter-on-quarter drop on record.

Andy Teasdale, car insurance spokesperson for MoneySuperMarket said the drop was simply down to “fewer miles” being driven due to the pandemic.

He said: “Our research shows that prices fell significantly in the first three months of this year, with the drop in average premiums the biggest recorded during the eight years we’ve been tracking prices.

“A trend we can put down to car owners driving fewer miles during the pandemic.

“Extra competition for sales is causing insurers to lower premiums, as fewer claims means that insurance is more profitable and providers can therefore reduce prices and pass this benefit on to customers.

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Policies were £101.54 cheaper between January and March 2021 than they were between October and December last year.

Drivers in the Yorkshire and the Humber, the North West, North East and the East Midlands also saw insurance prices fall by 15 percent.

Drivers aged between 17 and 19 saw the biggest dip in insurance prices at the start of 2020 with costs down by 37 percent.

According to the analysis, younger drivers have saved £296.75 on the cost of premiums between January and March compared to the last three months of 2020.

Drivers between the age of 20 and 24 have seen the next highest reduction with policies down more than £100.

However, elderly road users have seen the lowest reduction with prices down just six percent or £16.

Mr Teasdale added: “The latest view is that restrictions will be eased by the end of June this year and many people will return to the workplace.

“It is unclear how many of those who have been working from home during the last year will potentially reduce their time in the workplace.

“If there is a significant shift, it could mean that we can enjoy lower premiums for longer.

If your policy is up for renewal, the best way to make sure you’re getting the right policy for your needs, and at the right price, is to always shop around for a better deal as doing so can save you up to £217.

“Start researching new policy prices a month before you are due to renew, as committing to a purchase in the 15-28 day window before your renewal date could save you on average 17 percent vs renewing a day before your new policy is due to start.”



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