Insurance prices are lowest at the start of the year, with February being the cheapest month for the average premium.
New research from Comparethemarket.com has revealed that car insurance prices rise throughout the year, with the average insurance premium £37 cheaper in February than in any other month.
The price comparison website found that December has been the most expensive month to buy car insurance for the past seven years with an average premium of £726, almost £100 more than February.
Car insurance prices use a ‘dynamic model’, which means that they may fluctuate over time relative to rising and falling levels of demand.
“Insurance prices have rocketed in recent years, and the cost of owning a car is already too costly for some as a result. Many are resorting to insurance packages that include telematics devices to lower minimise their costs.”
Scott Hamilton-Cooper, Sales and Operations Director at AX
“Technology can be used for more than limiting insurance bills, with telematics devices also helping businesses to gain better control over their fleets through vehicle and driver behaviour monitoring, as well as assisting in speeding fine and congestion charge disputes.”
Almost half of drivers between the ages of 17-24 said that they received financial support from the parents to help with motoring costs over the last 12 months.
As the cost of car insurance continues to rise, a telematics boom is expected in the next few years, with 3.8 million drivers considering the switch to a ‘black box’ policy.