According to latest data from the insurance trade body the Association of British Insurers (ABI), the average comprehensive car insurance premium stood at £635 in the first three months of this year, up 1% compared to the final three months of 2023. Premiums rose by a massive 25% in 2023 compared to 2022, although the latest quarterly numbers indicate that costs are finally showing signs of stabilising. However, the average amount paid by drivers in the first three months of 2024 was still 33% more than the amount paid in the same period last year.

Advertisement

Anna McEntee, director at Compare the Market, said: “Drivers aged under 24 and over 80 are seeing the steepest increases. Typically, insurers consider motorists in both age groups as more likely to make a claim which could lead them to see higher premiums.

Save money by comparing car insurance quotes today

Classic car insurance - get a free quote today

“For those concerned about the cost of their motor premium, shopping around ahead of renewal is one of the best ways to try and save money on car insurance. We want to encourage older motorists who may be more inclined to stick with their existing insurer each year to compare prices ahead of renewal to see what deals are available.”

As well as shopping around for cover, once you’ve found a policy, if you’re in a financial position to pay for your car insurance upfront you should do so, as you’ll pay more to spread your payments out over the year. That’s because interest is charged on monthly payments, but there’s no interest payable if you pay your premium in one go.

Making sure you buy cover at the right time can also make a significant difference to the cost of insurance.

You can usually buy car insurance up to 29 days before you want your policy to start, but research carried out Go.Compare by shows that the best time to buy cover is 26 days before your renewal is due. On average, policies bought 29 days before the start date cost £383, while those bought 26 days in advance cost £367.

The most expensive time to buy car insurance is on the same day you need it, with the comparison site calculating that purchasing it then will cost motorists £569 on average.

Tom Banks, car insurance expert at Go.Compare.com said: “Our data shows that the price of car insurance can vary a lot depending on how close you are to your renewal date, and it can pay to be organised - with policies bought 26 days in advance costing 55% less on average than those with a same-day start date. So, to get the most for your money, we recommend keeping a note of your renewal date and starting your car insurance search well in advance.”

Save money by comparing car insurance quotes today

Advertisement

Two-Thirds Buy Car Insurance At The Most Expensive Time - Read More

Advertisement
Advertisement
Advertisement