Why Is August The Cheapest Month For Car Insurance?

Wed 7th Aug 2019

New research has revealed that drivers could save on average £53 by renewing their car insurance now compared to other months.

The report which has been sourced by MoneySuperMarket has analysed thousands of car insurance quotes looking at which month is the cheapest on average on where in the UK is best place to live for car insurance.

Renewing in August could cost £496 on average, compared to January, the most expensive month, which comes top at £549 - a difference of £53.

And drivers in East London possibly already know that their postcodes are most likely to attract high premiums, a fully comprehensive cover policy in that neck of the woods would cost on average £935, compared to the lowest which is on the Isle of Lewis at just £303 - though those prices are reflected by the likelihood of your car being stolen or damaged.

Emma Garland, data scientist at MoneySuperMarket, said: "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.

"No matter your age or where you live, it pays to shop around at renewal rather than remain with your existing insurer.

"Firms usually reserve their best prices for new customers and motorists who explore other options can see significant savings."
 

Month

Average quote

January

£549.25

February

£507.62

March

£504.91

April

£510.72

May

£520.15

June

£506.37

July

£498.92

August

£496.16

September

£505.79

October

£515.53

November

£538.49

December

£540.42