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The cost of car insurance falls by an average of £80 a year

According to data from Compare the Market, the average car insurance premiums for the fourth quarter of 2021 fell by over 11% compared with the fourth quarter of 2020. The key findings, detailed below, also showed that younger drivers could benefit the most by shopping around for their car insurance.


The key findings from data on car insurance premiums from Compare the Market are summarised below:

  • The cost of car insurance fell by an average of £80 year-on-year in Q4 (Sep-Nov) to £640 – the cheapest average price for the three-month period since 2014.


  • The cheapest premium typically available dropped to £537 – so drivers could save an average of £102 by switching to a better deal instead of auto-renewing with their existing provider.


  • Young motorists could benefit from the biggest savings by switching car insurance. The average premium for drivers aged under 25 stands at £1,205 (September – November 21). However, if young drivers shop around for the cheapest deal when their policies come up for renewal, they could typically save £298 by switching.

Drivers can use comparethemarket.com’s premium tool to check if they are paying too much for their insurance based on their age, location, and the value of their car.


According to data from Compare the Market, the average car insurance premiums for the fourth quarter of 2021 fell by over 11% compared with the fourth quarter of 2020. The key findings, detailed below, also showed that younger drivers could benefit the most by shopping around for their car insurance.