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 £48 since the UK’s first coronavirus lockdown in March 2020, with the average now standing at £707. However, this is rise from a previous average of £701, last quarter.

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 has risen to £707, a rise of £6 compared to £701 from the previous quarter. This is the lowest winter premiums have been in five years, down £24 year-on-year. Meanwhile, the savings variable between September and November 2020 has fallen over the past three months to 14.73%, down from 14.75%.

After the savings variable had been falling steadily since Q1 2017, when it reached a high of 17.62%, the savings variable has now hit the lowest quarterly average since records began. This is partly due to competition levels rising sharply between car insurance providers, with the gap between the average and cheapest premiums narrowing, but it’s also because drivers are simply clocking up fewer miles, meaning the risk of claims is lower.

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

Premiums Remain Flat As Restrictions Continue

As the world continues to feel the effects of the coronavirus pandemic, the UK has been in a series of evolving restrictions. After the national lockdown in November 2020, followed by the new tier four covering most of the country over the festive period, road traffic remains lower than normal levels, as many continue to work from home and our leisure and social lives remain heavily impacted.

This has resulted in average premiums remaining largely flat when compared to the previous quarter. With road traffic still reduced compared to pre-COVID levels, there are fewer active drivers leading to fewer accidents and claims. As a result, average premiums remain largely unchanged.

With the discovery of a newly more transmissible variant of coronavirus, restrictions tightened significantly towards the end of 2020, and these restrictions may remain in place, or even tighten, which could see these averages hold for a longer period. However, once the restrictions begin to ease, and traffic levels return to normal levels, premiums could rise once again.

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.

Dan Hutson

Head of Motor insurance at Compare the Market

“Cheaper premiums this winter are a silver lining for motorists. Drivers will be pleased that premiums are more affordable than in previous years, as household budgets continue to be strained. The cost of insurance began to rise in the autumn, but after the second lockdown came into force premiums began falling again.

Switching to a cheaper deal continues to be the best way to cut the cost of car insurance with our research showing the difference between the cheapest and average premium is £104. In addition, if you plan to spend less time on the road in the coming months, perhaps because you can work from home, your insurer may consider you a lower risk and cut the cost of your premium. However, as the vaccine roll-out gets underway and the economy starts to recover, premiums may also start to rise as more motorists return to the roads”

Download our Premium Drivers Report

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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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