Martin Lewis offers advice about cancelling car insurance
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Cheapest car insurance premiums have dropped on average to £533 over summer, so drivers could save an average of £98 by auto-renewing instead of switching to another deal. This is the lowest quarterly average for cheapest premiums available since summer 2015.
Average annual car insurance premiums also fell by £71 year-on-year to £631 across the summer months (June to August).
This is compared to an average of £702 for the same three-month period in 2020.
Data from the Department for Transport has shown traffic has returned to pre-pandemic levels.
Road traffic levels have reverted with car use returning to 98 percent in august, compared to the February 2020 level.
In each lockdown since March 2020, the cost of car insurance had fallen due to fewer cars being on the road and a subsequent drop in claims.
Insurers had used savings from fewer claims to offer lower premiums to customers.
However, the average motor insurance premium has also declined in recent months, from £644 in June 21 to £617 in August 21.
This most recent fall in premiums suggests insurers may be competing more aggressively to attract new customers.
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Ursula Gibbs, director at comparethemarket.com, said: “Many motorists will be thrilled that the cost of car insurance has fallen.
“Premiums were expected to increase as traffic, and claims, returned to pre-pandemic levels.
“Instead, insurers have continued to cut the cost of car insurance for new customers.
“As the FCA’s new rules that ban loyalty penalties come into force at the start of 2022, insurers may be particularly keen to attract customers from rivals ahead of this deadline.
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