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Car insurance prices are falling – how much could you save?

Find out how to find the cheapest car insurance for you

It’s not often we report good news about insurance costs. But new data has revealed the average car-insurance premium fell by 0.7% to £660.64 over the past nine months.

According to new figures from the AA, the average car-insurance premium has decreased steadily over the past three quarters, saving drivers around £4.83.

This isn’t much of a saving, though, and some drivers are still paying significantly more than others. Analysis by Comparethemarket.com has revealed how the average car-insurance premium differs depending on where you live, your age and your employment status.

Below, you can find out how these factors affect the cost of your car insurance. Plus how to find the cheapest insurance for your needs.

Car insurance prices by region

Comparethemarket.com has revealed the true cost of car insurance in its most recent Motor Snapshot report.

The price-comparison site collected car-insurance quotes given in the first three months of this year, and found that drivers in the South West hold the cheapest average car insurance premium of £546.92.

This is followed closely by drivers in Scotland, who pay an average of £564.29. Motorists in Wales come in third, with an average car insurance price of £630.94.

The fourth and fifth cheapest regions for car insurance are the South East and North East, where drivers pay £635.98 and £662.15, respectively.

Unsurprisingly, Greater London is the most expensive area for car insurance, with drivers paying an average of £1,068.08.

This means that drivers in Greater London pay around £521.08 more than those living in the South West – the cheapest area for car insurance.

Younger drivers hit hardest

Younger drivers are the worst hit when it comes to car insurance premiums. In fact, 16 to 24-year-olds pay £1,242 on average for a car-insurance policy. 

The cost of car insurance falls steadily as the age of the driver increases.

Over-65s were found to pay the least for car insurance with the average premium costing £375.

This amounts to a staggering £897 difference between car insurance costs for the nation’s younger and older drivers.

How your employment status affects your car insurance cost

Retired drivers were found to have the cheapest car insurance premiums, paying £338 on average.

On the other hand, motorists in full or part-time education paid the most for their insurance at £1,192.

Drivers in full or part-time employment paid an average premium of £693.

If you’re employed it’s important to remember that the job title you give when registering for car insurance can also affect the price of your policy.

Often the jobs available to choose from are quite broad, meaning you might legitimately fall into multiple categories.

For example, if you work in publishing as a writer and state your occupation as ‘journalist’, you’re likely to pay more than you would if you said you were an editor, copywriter or even a reporter.

But you should never lie about your job, as this is considered fraud and you could be prosecuted.

Employment status Average premium
Full/part-time education £1,192
Unemployed £1,162
Not employed due to disability or illness £723
Self-employed £711
Employed £693
House person £621
Retired £338

The most popular cars to insure 

Comparethemarket.com’s analysis also revealed the top 10 most popular car models to insure – and the cars with the cheapest premiums weren’t always the most popular.

Ford Fiestas were the most popular cars to insure, with drivers paying an average premium of £802.31.

The second most popular car to insure was a Vauxhall Corsa, costing drivers an average of £916.15 to insure.

With an average car insurance premium of £644.62, the Ford Focus was the third most popular type of car to insure. 

Rank Car make and model Average premium
1 Ford Fiesta £802.31
2 Vauxhall Corsa £916.15
3 Ford Focus £644.62
4 Vauxhall Astra £782.53
5 Volkswagen Golf £829.67
6 Volkswagen Polo £874.39
7 Renault Clio £816.51
8 Audi A3 £932.40
9 BMW Mini Cooper £615.84
10 Fiat 500 £663.75


How to find the best car insurance deal

Shopping around for the best car insurance deals can save you hundreds of pounds, but you shouldn’t automatically go for the cheapest policy.

It’s important to read the details of each policy carefully, including the excess and what is and isn’t covered.

The time of year that you buy car insurance can have an impact on the price you pay, too, with research showing that February is the cheapest month for car insurance while December is the priciest month for car insurance.

Customer service is another factor you may want to bear in mind. To help you find the best insurer, we’ve combined expert Which? analysis of over 30 car insurance providers’ standard policies with feedback from thousands of policyholders to produce our unique car insurance reviews.

You’ll also find useful tips in our comprehensive car insurance advice guide and the video below.

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