A Study by insurance firm MoneySupermarket suggests that wallet-savvy motorists should renew their insurance policies in August for the best rates.

The finding state that those taking out fully comprehensive car insurance in August are paying an average of £53 less than those who insure in January; the average cost in August 2018 was £496, representing a 10 per cent saving over the January 2018 average of £549.

It appears that insurance is on the rise to a degree, too, with an average cost of £472 between April and June this year, a nominal increase of £6 over the same time period last year. However, this figure also heralds positive news, as premiums haven’t been below £500 in two consecutive quarters since the summer of 2015.

Prices have also fallen for the two youngest age groups in the last 12 months – a 12 per cent drop for 17-19 year-olds has seen the average drop to £993.61, and 5 per cent for 20-24 year olds, bringing the group’s average to £939.72.

Emma Garland, data scientist at MoneySuperMarket, commented: “It’s good to see premiums staying below £500 for the second quarter running and this can be attributed to two things. First, there was a swift drop in the spring last year after the government reduced its calculations for lump sum payments for personal injury claims, which particularly affected younger drivers because they have more accidents.

“The second, longer term trend is the growing availability of black box, or telematics insurance. It is competitively priced and encourages safer driving, so it has helped to keep a ceiling on premiums.”

Categories: MotoringStudy