The average annual car insurance premium has dipped slightly to £602 in March 2021.
This marginal decline from the previous month suggests the end of the big price falls and the average premium is still £110 cheaper than the same month last year.
Dan Hutson, head of motor insurance, comparethemarket.com said,“The rapid fall in car insurance premiums, seen during the winter, appears to have come to a halt at the start of spring.
“This could mean that premiums will start to rise through the next few months, with more cars on the road as businesses reopen and the economy gets back into gear, although big savings can still be made by shopping around.
“Some areas such as East Anglia, the West Midlands and Northern Ireland have already seen minor increases in premium costs month on month. However, motorists will be glad that premiums are still at a six-year low, having plunged by more than £100 from March 2020.
“This will be particularly encouraging for young drivers, who typically pay three times more for their car insurance than drivers aged over 65. Drivers should remember to shop around when their policy comes to an end to ensure they get the best possible deal.”
“Now that lockdown is being lifted, households thinking about buying a new or used car might want to consider their insurance options. Insurers can change an existing policy but may charge an administration fee, or drivers can pay a cancellation fee and shop around for a new policy while premiums are still low – but bear in mind this can impact the no claims discounts for the year.”