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 could 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 could pay to shop around for your car insurance.

View our latest Premium Drivers Report

Go to the report


Our latest report suggests that average insurance premiums have fallen by an average of £80 year-on-year, with the average now standing at £640. The cheapest average premiums have also fallen over the last year, with a £68 drop year-on-year meaning that drivers could potentially save £102 by comparing car insurance quotes.

New regulations set to change the market in 2022

While the quarterly average price of car insurance has risen ever so slightly for two consecutive quarters, the average price for car insurance remains relatively flat, with only a £9 rise to £640. Despite these small rises, the average cost of car insurance remains among the lowest in recent years.

This fall in the average cost of car insurance could be the result of insurers trying to keep prices low, ahead of the introduction of Financial Conduct Authority (FCA) pricing regulations introduced in January 2022. With new rules preventing insurers from offering exclusive discounts to new customers, they may be trying to attract as many new customers as possible, before they’re potentially less able to do so. Once they have those customers, prices may later rise.

As we reach the end of 2021, the average car insurance quote rises from month-to-month (Aug-Dec), but this is a typical seasonal trend. However, the trend of prices falling in January may be bucked in 2022, as insurers react to the new regulations on discounting for new customers.

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

Ursula Gibbs

Director at Compare the Market

"Motorists will be glad that premiums are cheaper than last year but there is a sense of 'buyer beware'.  It looks like insurers have been keeping premiums lower as part of a clever pricing game to try and lock in as many customers as possible before new regulations are introduced in January. Our figures suggest motorists could lose out if they auto-renew their policy; by switching to the cheapest premium instead, motorists could save around £100 and young drivers could see even bigger savings of almost £300. These savings gained by those drivers switching their provider could also help to offset the current rising cost of living. 

"However, there is uncertainty over what will happen to the cost of car insurance next month. While the rule changes should end the loyalty penalty, this does not mean that auto-renewing your insurance will get you the best deal. People should be careful not to fall into any traps as insurers may decide to hike premiums for a large number of customers if they can't charge existing customers more. Though the size of any price increases for motor insurance may be limited if more Omicron travel curbs come into force. One of the best ways to beat any potential price increase is to switch early. You could save more than £300 on car insurance by shopping around roughly 20 days before your renewal, rather than leaving it to the last minute."

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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