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Updated: 7 Jul 2020

Car insurance premiums plummet 5%: how much will you save?

Find out why your car insurance could be getting cheaper

UK drivers are set to make a saving on their bills as the cost of car insurance fell during the third quarter of 2019, according to the latest Money SuperMarket Car Insurance Price Index.

The price comparison site analysed quotes from between July and September 2019, finding that drivers are paying less on average to protect their motors.

Here, we look at why the cost of car insurance has dropped and how to find the best car insurance cover for your motor.

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The cost of car insurance falls

The cost of the average comprehensive car insurance policy has dropped 5% in the third quarter of 2019.

Between July and September 2019, the cost of car insurance fell to £459, down from £483 during the same period last year.

The figures come as welcome news for UK drivers, who are now saving £24 on average when taking out cover.

It also marks the first time since 2015 where the average price of a policy has been under £480 for three consecutive quarters.

Why is the cost of car insurance falling?

Until recently, government reforms have driven the fall in car insurance premiums.

In December 2018, the government introduced the Civil Liabilities Act, which changed the way personal injury compensation claims are calculated.

Although the changes aren't expected to come into force until April 2020, insurers started to pass anticipated lower costs on to drivers, so that the average premium fell £63 by January 2019.

Growth in the number of people taking out black box or telematics insurance has also brought down the cost of car insurance. Younger drivers have seen the greatest benefit from this trend, as almost half (48%) of black box insurance policies taken out between July and September this year were by drivers aged 17-19.

A decline in the number of new cars being purchased has also caused a dip in the cost of car insurance across the board. Newer models attract a higher car insurance, premium as they contain advanced technology and more expensive car parts.

Find out more: best and worst car insurance

Compare the cheapest car insurance premiums

The cost of car insurance is cheapest in the South West of England, where motorists pay an average of £357 for a comprehensive policy.

Drivers in Scotland have the second-lowest car insurance premiums, paying an average of £357 a year for cover.

Spending around £381 on average on car cover, Wales came in as the third cheapest area for drivers.

The table below shows the cheapest and most expensive car insurance premiums in the UK.

RegionQ3 Premiums
South West£330
South East£396
East of England£404
North East£418
East Midlands£439

Source: Money Super Market

Three ways to get cheap car insurance

Whether you're a first-time driver or looking to renew your policy, these simple steps could help you make a saving on the cost of car insurance.

1) Don't just get the cheapest policy

Although price is an important factor to consider, don't just go for the cheapest policy right away.

It could end up costing you more in the long run if you haven't bought the right level of cover.

2) Read the terms carefully

Terms and conditions are notoriously dense but don't let this put you off of finding out what a policy will actually cover you for.

If you don't purchase the right type of policy, you risk being caught our if you have to make a car insurance claim and find out that you're not actually protected for that particular incident.

3) Be strategic about when you buy

The time of year that you buy car insurance can also have a big impact on the price you pay for a policy.

Research shows that February is the cheapest month for car insurance while December is the most expensive month for car insurance.

To help you find the best car insurance provider, we've combined expert analysis from over 30 car insurance policies, along with feedback from thousands of policyholders to produce independent car insurance reviews.