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Premium Drivers Index - Car Insurance Prices

Every quarter, comparethemarket.com releases research into the latest savings index for car insurance premiums by comparing our ‘cheapest’ and ‘average’ motor premiums across all age groups. The resulting figure can help to give you an idea of how much it would pay off to shop around for your car insurance.

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Car Insurance Savings variable

These graphs show that the cost difference between the cheapest and average premiums has grown to £118 – the highest point since the Premium Drivers index began in March 2014 and another quarterly rise. The savings variable itself has reached 17.0%, up from 16.87% the previous quarter. This continued high variable means that there could be opportunities for you to make savings on your car insurance if you compare prices at renewal time.

The average motor premium has risen by £92 year-on-year to £697 in Q3 2016, up from £605 at the same time last year. The cheapest policies have also increased in price, rising £69 from £510 to £579 over the past 12 months. Insurance costs have recently risen due to increased insurance fraud, rising repair bills and increases to Insurance Premium Tax so it really does pay to shop around.

Q3 results

savings variable

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Young Drivers

And, as we’ve seen from our bi-annual Young Drivers Report , 17-24 year olds are the hardest hit by this price rise. These drivers pay on average £1,494 a year for their car insurance, £797 more than the average for all age groups. But they also have the most to gain from shopping around – they could save around £338 just by switching insurance provider.

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Dan Bass

Head of Motor Insurance

comparethemarket.com

“The difference between the cheapest and average premium, despite falling slightly over the last few months, has hit an all-time quarterly high. A small rise of £4 quarter on quarter may seem small but drivers who don’t shop around for their insurance could end automatically adding nearly £120 to their bill. The quarterly ‘switching saving’ for the same period in 2013 was only £78 – rather than £118 today – it becomes easier to see how motorist’s pockets have taken a serious hit. It’s crucial that drivers shop around and potentially save themselves significant amounts of cash.”

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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 Premium drivers’ 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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