Premium Drivers index

Each quarter, Compare the Market publishes research on the latest savings for car insurance premiums by comparing our ‘cheapest’ and ‘average’ motor premiums across all age groups to determine something we call the ‘savings variable’. The results help to give you an idea of how much it would pay to shop around for your car insurance.

Each quarter, Compare the Market publishes research on the latest savings for car insurance premiums by comparing our ‘cheapest’ and ‘average’ motor premiums across all age groups to determine something we call the ‘savings variable’. The results help to give you an idea of how much it would pay to shop around for your car insurance.

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Our latest report suggests that insurance premiums have fallen by £126 since the UK’s first coronavirus lockdown in March 2020, with the average now standing at £629. This is the lowest price average since 2015.

Car Insurance Savings variable

The savings variable is the figure given to the difference between the cheapest and average car insurance quote. Today, the average quarterly premium is £629, a £23 drop compared to £652 from the previous quarter. This is the lowest premiums have been in nine years. Meanwhile, the savings variable between March and May 2021 has risen slightly over the past three months to 14.68%, up from 14.38%.

This small but steady rise in the savings variable over the last quarter sees it climb from the record low set in March 2021, but still a long way off its record high of 17.62% in Q1 2017. This is the first rise in the savings variable since the start of 2020, before the coronavirus pandemic significantly reduced the amount of traffic on the roads. As the UK continues to open up and return to a life much closer to normal, this trend may continue, as traffic returns to pre-pandemic levels.

Car insurance prices at their lowest since 2015

With the quarterly average price of car insurance dropping to £629, car insurance is the cheapest it’s been since 2015, when the Q3 average was £606. Insurance prices continue to fall as the coronavirus pandemic continues to place restrictions on our lives.

However, as the UK continues to ease those restrictions, people are beginning to venture out in larger numbers. With the final stage of the government’s roadmap scheduled for 19 July 2021, restrictions should end and people will be able to enjoy old freedoms. This will no doubt lead to a rise in traffic levels, which could then lead to the trend in falling insurance premiums reversing.

Want to check that you’re paying the right price for your premium? Use our interactive comparison tool to see the average premiums for similar drivers to you.

Want to check that you’re paying the right price for your premium? Use our interactive comparison tool to see the average premiums for similar drivers to you.

Interactive comparison tool

Dan Hutson

Head of Motor insurance at Compare the Market

“Motorists will be relieved that car insurance premiums have once again fallen since household finances have been under pressure from both the pandemic and the prospect of rising inflation. For those looking to reduce their premiums further, switching insurer is a quick and easy way to reduce the cost when your policy comes up for renewal, especially for younger motorists. Our research shows the difference between the cheapest and average premium is £92 but these savings increase to almost £200 for drivers below the age of 25.

“However, as more cars return to the road, it is worth noting that the cost of insurance could start to increase after rapidly falling in the first few months of the year. As the remaining Covid-19 rules are set to be relaxed and more people head back into the office, we may see more car insurance claims causing the cost of premiums to accelerate back to pre-pandemic prices. Drivers may want to think about switching early to lock in a lower premium if they are not too far from their renewal date.”

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Past reports

We carry out this research every quarter to find out what the current landscape means to you when it comes to buying your car insurance. Here you can see our previous reports to see how the industry has changed over the past year and what this means for your car insurance premium.

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