Lowest car insurance premiums in three years up for grabs

The cost of car insurance has fallen to a three year low, according to the latest analysis of 34 million car insurance quotes by MoneySuperMarket.

Average premiums for new customers hit their lowest price in the third quarter of 2013 at £394 - 16 per cent lower than the same time last year (£487), and 38 per cent lower than the second quarter of 2011 when the average cost of new car insurance was an eye watering £545.
 
This underscores the importance of being a ‘new' customer at every renewal as insurers tend not to reward loyalty. Instead, premiums usually increase for those who renew, with the best prices reserved for new customers.
 
Kevin Pratt, car insurance expert at MoneySuperMarket, said: "It really pays to shop around for your car insurance in a market of falling prices. With the typical cost for new cover 16 per cent lower now than the same time last year, you should be able to beat your renewal premium and pay even less than you did the previous year. Cheaper premiums are up for grabs, and the average saving for someone using MoneySuperMarket to switch their car cover is around £320."

Cheapest postal areas for car insurance in the UK
 
The analysis also revealed the largest decreases in car insurance premiums were for drivers insuring their vehicles in Northern Ireland (19 per cent cheaper), Bolton, and Liverpool, (both 18 per cent cheaper). Furthermore, motorists in Perth and Dumfries benefit from the cheapest average premiums overall, with annual cover typically costing £232 and £233 respectively. Interestingly, eight of the top ten cheapest locations for car insurance are found in Scotland.

Kevin Pratt continued: "Keeping a car - or cars - on the road is crucial for many families all over the UK, whether it's for the work commute, the school run, or the ‘taxi of mum and dad'. The cost of motoring can be crippling, and the variation across the country is huge. Seeking out the best possible deal on insurance each year can make a real difference, motorists should avoid the annual renewal ‘trap' and pay as little as possible for the cover they need."
 
The cost of petrol accounts for a huge proportion of household outgoings too, to help motorists work out the best fuel deals MoneySuperMarket has also developed a fuel calculator, so drivers can identify when driving the extra distance for cheaper fuel means making a saving, and when it actually ends up costing them more.