Car insurance premiums fall despite drivers returning to roads


Drivers are being offered the cheapest average car insurance premiums since the summer of 2015, with the lowest average falling to just £533, according to

The price comparison website’s latest Premium Drivers research has revealed that the average annual car insurance premium declined by £71 year-on-year across the summer months (June to August) and now stands at £631, compared with an average of £702 for the same period in 2020. 

Last year’s Covid-19 lockdowns lowered the cost of insurance as fewer cars took to the road and insurers passed on savings from a subsequent fall in claims. 

But the average motor insurance premium has also declined in recent months, from £644 in June to £617 in August, despite Covid-19 restrictions easing and road traffic returning to pre-pandemic levels. said the fall in car insurance premiums suggests that insurers may be competing more aggressively to attract new customers, particularly young drivers.

Ursula Gibbs, director at, 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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Mark Dugdale is the editor of Claims Media. Mark welcomes articles, letters or feedback from readers and can be reached via