Britain’s cheapest places to insure your car revealed as average premiums plunge by £217 a year

DRIVERS are paying £217 less for car insurance than they were two years ago – but where you live can still make a huge difference to your bill. The average premium stood at £593 in June, down by more than a quarter from £810 in June 2024, according to Compare the Market. Drivers are paying less for car insurance than they were two years ago Credit: Getty It’s also a drop of £43 from £636 a year ago, offering some relief to households battling soaring living costs. But recent analysis by the comparison website found that rising petrol prices have added an estimated £149 a year to drivers’ fuel bills. Sign up for the Money newsletter Thank you! Plus, insurance costs have started creeping up again after the average premium reached a two-year low of £589 in January. Cheapest places for car insurance Drivers in the South West are being offered Britain’s cheapest car insurance, paying £469 on average. Wales is the next cheapest area, with a typical premium of £492, followed by the South East at £527. At the other end of the table, motorists in London face the highest average cost at £962. That is £493 more than in the South West, meaning drivers in London pay more than double for their cover. Greater London was the second most expensive area, at £912, while Northern Ireland came third at £760. Most read in Money The table below shows the average premiums by area: Average car insurance premiums by area. Source: Compare The Market London and the North West recorded the biggest falls between June 2024 and June 2026, with premiums dropping by 31%. Prices in East Anglia fell by 28% over the same period. Northern Ireland was the only area where premiums increased, rising by 2% from £751 to £760. Good news for young drivers Younger motorists have enjoyed the largest saving over the past two years. The average premium for drivers aged between 16 and 24 has fallen by £494, from £1,808 to £1,314 – a drop of 27%. But younger drivers continue to pay significantly more than any other age group. Their average premium is almost four times the £338 paid by motorists aged between 65 and 79, who receive the cheapest cover. Drivers aged 25 to 34 have seen their typical bill fall by 22%, from £849 to £656. The smallest reduction was for motorists aged 80 and over, whose average premium dropped by £100, from £645 to £545. Cut your car insurance premiumS Pay upfront Many insurers charge extra fees for monthly payment plans. These can vary, but might include set-up fees, transaction charges or interest for spreading the cost over several months. By paying annually, you can avoid these extra costs and keep more money in your pocket. Tweak your job Certain jobs are seen as more risky than others for insurance purposes. So making small but accurate changes to your job title can save you money. For example, swapping your role from “chef” to “caterer” can save you £20, GoCompare found. And changing from “fast food delivery driver” to “delivery driver” could save you £40. But lying about your job could invalidate your policy, so make sure any tweaks are legitimate and accurate. Save the date Renewing your car insurance sooner rather than later could save you some cash. New cover becomes more expensive the closer you get to renewal. You can buy your insurance up to 29 days before the policy start date and “lock in” the price you are quoted that day. According to GoCompare, a typical driver can save up to £150 by buying new cover at least 26 days before their current policy ends. Increase your excess Your excess is what you agree to pay each time you need to make a claim on your policy. When setting up, you can usually choose your own excess, which can be as low as £100 and as high as £500 or more. The higher your excess, the lower your premium and vice versa. This means you could lower the cost of your insurance by agreeing to pay more if you need to make a claim. But before you hike your excess, make sure you would be able to afford it if necessary. Comment now