Car insurance experts disclose ‘best way’ drivers can save on policies in the New Year12/31/2020
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CAR INSURANCE experts at Compare the Market have warned drivers can save up to £104 by shopping around for a new agreement this Winter. Experts say switching policies “continue to be” the best and easiest way for drivers to save money on their cover for quick savings.
They revealed insurers may help drivers lower the cost of their premiums if they have changed their circumstances as a result of the pandemic.
Dan Hutson, Head of Motor Insurance at Compare the Market said those who may be spending less time on the road could be able to make major reductions to their spending.
He said: “Switching to a cheaper deal continues to be the best way to cut the cost of car insurance.
“Our research showing the difference between the cheapest and average premium is £104.
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“In addition, if you plan to spend less time on the road in the coming months, perhaps because you can work from home, your insurer may consider you a lower risk and cut the cost of your premium.”
The experts said younger drivers aged under 24 could make even higher savings from shopping around.
The difference in premiums between the lowest and average prices stands at £204 for this demographic meaning many can cut costs in the New year.
But Mr Hutson has warned costs “may start to rise” within months as drivers are expected to return to normality in 2021.
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He added: “As the vaccine roll-out gets underway and the economy starts to recover, premiums may also start to rise as more motorists return to the roads.”
His comments come after data from Compare the Market found premiums have dropped to their lowest winter level for five years.
Average premiums stand at £707, down £24 from this stage last year as firms push down costs in the wake of the pandemic.
In May, the Financial Conduct Authority (FCA) encouraged all car insurers to look at the risk profile of customers and review charges where necessary.
Insurance firms were also encouraged to waive cancellation fees and other charges associated with updating details.
Data from the Department for Transport (DfT) shows road traffic has decreased 21 percent year on year.
Insurance experts at Hello Safe said the number of car insurance claims have almost halved when compared with 2019.
This was down to a 41 percent fall in the number of car accidents and a 54 percent decline on repair claims.
Compare the Market says average premiums have dropped £48 since the start of the pandemic as a result of these changes.
Following the second lockdown, the average premium in November fell by £25 from the previous month to £691.
This was the lowest monthly figure since March with the cheapest premium on the market also down to £591 compared to £610 in October.
Mr Hutson added: “Cheaper premiums this winter are a silver lining for motorists.
“Drivers will be pleased that premiums are more affordable than in previous years, as household budgets continue to be strained.
“The cost of insurance began to rise in the autumn, but after the second lockdown came into force premiums began falling again.”
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