Every month, Compare the Market compiles its Motor Snapshot which uses interactive tools to look at the cost of insurance depending on your age and where you live. Find out more in this month’s report.
The data is based on all motor insurance quotes undertaken via Compare the Market in December 2020.
Head of Motor, comparethemarket.com
"Our research shows the latest lockdown has turbocharged the usual post-Christmas decline in premiums with the average cost of premiums falling by £100 in a month. With fewer cars on the road, insurers seem to have passed on some of the savings from reduced claims costs – putting money back in the pockets of motorists. Premiums are now at their lowest level in almost six years as insurers compete to attract new customers. This decline in prices will be a silver lining for those struggling financially during the pandemic. In particular, premiums have fallen for young drivers under 25 years old by £226, when compared to the same month in 2019.
"However, these savings will only be available to drivers who shop around for the cheapest deal rather than automatically renewing. Drivers shouldn't leave it to the last minute to switch as car insurance prices can be £319 cheaper by switching three weeks before the end of a policy compared to the day of renewal."