Motor Snapshot

“This winter saw exceptionally low car insurance premiums due to the impact of travel restrictions and fewer cars on the road as a result of the pandemic. Premiums typically increase slightly in spring and last month we saw a 5% increase - the first uplift in the cost of car insurance since December. Although premiums are still £44 cheaper than last year, as more restrictions are lifted in the coming months, we could see the increase in premiums accelerate. 

“Higher premiums as we come out of lockdown will be particularly difficult for young drivers, who typically face the steepest insurance costs. Young drivers have seen the cost of insurance rise by more than £50 month-on-month to £1,084.

This substantial cost could potentially discourage many young people from learning to drive when lessons have only recently been permitted again. The most effective way for drivers to offset this rise in the cost of car insurance is to shop around for a cheaper deal when their policy comes up for renewal. Premiums can also be substantially cheaper by changing insurance provider three weeks before the end of a policy compared to the day of renewal, so it’s best not to leave it until the last minute to sort your new policy.”