Car Insurance '11% cheaper than 2011'

By Lucy Bower

Research by MoneySupermarket indicates that car insurance premiums in the UK have reduced by over 10% since June last year and are now at an 18-month low.

The average cost of insuring a car in the UK was over £550 18 months ago according to the consumer website, but the average cost is now £478.

Drivers have faced big squeezes in their personal budgets in recent years, with rising insurance premiums and the cost of petrol steadily increasing too - petrol is looking like it will soon pass the £1.40 a litre mark.

Analysis shows that where you live can affect how much you pay to insure your car. Busy districts attract higher premiums because of busy roads and more instances of car crime, whereas residents in rural areas tend to enjoy lower premiums.

All the regions in the UK have experienced 'car insurance deflation' but Londoners benefited from it the least. West Londoners saw a 3% decrease compared with a national average of 10.6%.

Londoners in general pay the highest prices - £748 on average, followed by the North West where the average is £592, followed by the West Midlands where it's £516. By comparison, drivers in South Scotland only pay £309 on average - 59% less than drivers in Greater London.

Car insurance experts recommend that you shop around for a new policy when your renewal date approaches, as savings can often be made when you switch insurers.

Image © iStockPhotos / fred hall

Tags: Money Supermarket, car insurance, savings

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