Motor insurance premiums fall 13 percent in 12 months

• Average cost of a fully comprehensive policy has fallen £70 in past 12 months, from £553 to £483
• Motorists in Chelmsford and Peterborough saw biggest price changes, with premiums dropping 18 and 17 per cent respectively
• Despite recent drops, premiums now 17 per cent higher than five years ago
• Verses last year the average home insurance premium has risen by £7.10 (+6%)

New data released by the UK’s leading price comparison website, MoneySuperMarket, reveals a further drop in the price of car insurance, with the average cost of a fully comprehensive policy falling £70 (13 per cent) in the past year, from £553 to £483. However, despite prices tumbling in the short term, MoneySuperMarket analysis shows that, over the course of the past five years, average premiums have risen significantly (17 per cent), from £411 to £483.

The data, which is based on analysis of millions of car insurance quotes run on the MoneySuperMarket website in the last 12 months, looks at which UK postcodes saw the most significant change in cost.

Motorists in Chelmsford have seen their premiums fall the most over the past year (18 per cent), from £516 to £423 – a reduction of £93. Those in Peterborough and Reading have also seen large drops since September last year, with premiums tumbling by 17 and 16 per cent respectively.

Looking back over the last five years, those in Dundee have been impacted most by fluctuating prices, with the average cost of a fully comprehensive policy rising 35 per cent from £268 in 2013 to £363 now. Other areas with significant increases include Inverness (35 per cent), Falkirk (34 per cent) and Exeter (34 per cent).

UK postcodes with the most significant change in the cost of an average fully comprehensive policy

East London remains the most expensive place to insure your car, with the cost of a fully comprehensive policy now standing at £930, while the Isle of Man is the cheapest at £285.

Money Supermarket also released new data which looked at the UK’s home insurance policies and how, unlike car insurance, over the course of 12 months prices have increased. It revealed that versus last year the average home insurance premium has risen by over 6%. The data also shows how content insurance has seen an increase by up to over 5.3% year on year.

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