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, instead of simply auto-renewing with your current provider. In general, the higher the savings variable is, the more you could save by comparing prices.

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Car Insurance Savings variable

The past few years have proved to be an expensive time for UK drivers. Our latest report suggests that insurance premiums have increased. The savings variable in September - November 2018 has expanded over the past three months to 15.55%, up from 15.45%, after it had been steadily falling since it reached a high of 17.27% in Q3 2017.

Today, the average quarterly premium – blended across all age groups – has risen to £744, an increase of £12 compared with the previous quarter. Motorists are paying an average of £217 more for their car insurance today than they were five years ago.

However, in the past two years, the savings variable has in fact narrowed, suggesting a higher level of competition amongst providers. This might lead to lower prices as insurance providers battle to win customers with better offers. Despite downward pressure on prices, the fact remains that drivers are still facing far higher motor insurance premiums, especially if they fail to shop around.

As premiums have risen, so too have the potential savings to be made. The way to mitigate these rises and encourage competition among providers is for consumers to shop around every year.

Drivers in Britain are overpaying on their motor insurance by £2 billion

As car insurance premiums have increased in the past five years, so have environmental factors for potential car buyers, with 84% of drivers becoming more conscious of their environmental impact.

2019 is set to be the year of the eco-conscious driver, as environmental factors have become the second most important consideration to prospective car buyers, behind price. Our figures show that 25% of people are considering fuel, carbon efficiency and alternative fuel, as the most important factor when buying a car.

The drive to becoming greener has resulted in 53% of people saying that they would avoid taking unnecessary car journeys and 48% said that they would avoid unnecessary acceleration or heavy braking to minimise emissions. Some have even been encouraged to ditch their cars entirely, with 36% of people saying that they will take public transport, walk or cycle.

With 24% of people potentially looking to buy a car in 2019, this could result in a significant increase in the volume of electric and hybrid cars purchased in the New Year.

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Dan Hutson

Head of Motor Insurance

Compare the Market

“Whilst it’s positive to see that environmental concerns have risen up the ranks of the key considerations and priorities for consumers, one of the key barriers to greater adoption of greener cars such as hybrid and electric vehicles has always been cost. The government’s recent decision to scrap the financial incentives available to people looking to purchase a hybrid or electric vehicle adds to this issue, so Compare the Market is calling upon the government to reinstate these grants and subsidies to really incentivise people to make greener choices when buying their next car.”

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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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