Motor premiums fall by 10%

Car insurance premiums have fallen by 10.6%, with falls in every part of the country according to research by MoneySupermarket.com.

Average premiums fell from a peak of £554 in April 2011 to an 18-month low of £478 now.

MoneySupermarket insurance spokesman Kevin Pratt said: “The main factor influencing the cost of car insurance is competition in the market. A few key insurance providers are looking to take on new business and are willing to offer low premiums to attract customers. While this continues, drivers will benefi, but there is no guarantee how long it will last.”

The aggregator analysed more than 16 million car insurance quotes over the past year, finding the trend had affected consumers differently across the country, though premiums had come down in all regions.

Drivers in Cleveland saw the biggest decrease (14%), followed by those in Shrewsbury and Harrogate (13.6%). Motorists in London, who normally pay among the highest insurance premiums, saw the smallest decreases in the cost of their insurance, with west London only seeing a 3% decrease.

Pratt added: “Those who receive their car insurance renewal soon should act quickly to benefit from the lower car insurance prices being offered. Shopping around for cover around 30-40 days before your premium expires may make a real difference to the price you’re quoted.”