Car insurance premiums drop the first time in over three years

– Car insurance prices across Scotland dropped by as little as -£37 (-6%) year-on-year, but 67% of loyal customers aren’t benefitting from savings – 

• The Scottish Highlands and Islands is the only region in the UK to see an increase in premiums over the past quarter – with motorists paying £5 (1%) more than three months ago.
• Three in five (60%) Scottish motorists renewed with the same insurer, according to a survey of UK drivers, despite more than two thirds (67%) claiming their renewal was more expensive that the previous year’s price⁽¹⁾.
• Motorists can find the average cost of premiums for their age and region using Confused.com’s car insurance calculator, using the latest price index data.
• Drivers in Shetland will be feeling the biggest sting, with premiums hiking a whopping £214 (35%) in just three months. 

Drivers in Scotland are finally enjoying some respite from inflated premiums as car insurance prices drop for the first time in over three years.

Premiums in the region have dropped between -£37 and -£58 in 12 months, with Scottish drivers now paying up to £638 to insure their cars, on average. This is following more than three years of price hikes. But even with this drop in prices, Scotland is lagging behind the UK, where prices took a U-turn three months ago. And in comparison to the rest of the UK, the price reductions seen across Scotland are small. The average UK premium fell -£95 (-11%) year-on-year to £752, on average. This is according to Confused.com’s Q2 2018 car insurance price index – the most comprehensivecar insurance price index in the UK based on more than six million quotes a quarter – powered by Willis Towers Watson.

According to the data, premiums in the Scottish Borders saw the smallest drop in all of the UK, with drivers paying £571 on average for car insurance, which is -6% (-£37) less than 12 months ago and the cheapest of all Scottish regions. Central Scotland, the Highlands & Islands and East & North East followed with small-scale decreases, seeing premiums drop no more than -9% (-£58) year-on-year.

However, some areas haven’t escaped price hikes, as car insurance in the Scottish Highlands and Islands increased by 1% (£5) in the past three months to £611, on average. This is the only region in the UK to have seen a price increase. Other regions across Scotland saw small dents made to their average premiums, dropping just -1% (-£3) in the East and North East and -1% (-£8) in the Scottish Borders. Meanwhile, Central Scotland saw the biggest drop of all four regions, with drivers paying -2% (-£15) less over the quarter. However, this is still the most expensive region in Scotland with motorists forking out a whopping £638, on average, for car insurance.

The average cost of car insurance in Scotland – Q2 2018 

Region	Avg. premium	Annual change	Quarterly change
Central Scotland	£638	-8% / -£57	-2% / -£15
Highlands & Islands	£611	-9% / -£57	1% / £5
East & North East	£577	-9% / – £58	-1% / -£3
Borders	£571	-6% / -£37	-1% / -£8

 But with decreases to car insurance prices in Scotland on the smaller side, Confused.com says this makes it more important than ever for motorists to be checking what they paid last year before they renew for another 12 months. Worryingly, new research by the driver savings site reveals three in five (60%) motorists in Scotland stayed with the same insurer last time they renewed, suggesting they didn’t shop around for a better deal, according to a nationally representative survey of UK drivers⁽¹⁾. This is despite more than two thirds (67%) of Scottish motorists claiming their renewal notice was +£41 more expensive than the previous year, on average.

To encourage drivers to take advantage of savings, Confused.com is letting drivers in on a little-known secret which could save them £613 on average. Confused.com data shows there is a day 21 ‘sweet spot’ for drivers which could see them receive the best price when it comes to renew⁽²⁾.

The average car insurance cost for drivers shopping around 21 days prior to renewal is £651⁽²⁾. This is compared to drivers who shop around for car insurance on the same day their renewal is due, who pay almost double (£1,264), on average⁽²⁾.

To help motorists in Scotland see how these annual increases have impacted their own premiums, Confused.com has created a car insurance calculator. The tool allows users to input their region, age and gender to find out the average cost of premiums for their demographic, compared to 12 months ago.

While most Scottish motorists may be celebrating the sudden drop in prices, they should spare a thought for drivers in Shetland, who faced the steepest quarterly hikes of any UK postcode area. Drivers in Shetland are now paying a whopping +£214 (+35%) more than just three months ago, bringing the average premium in the area to £833. This is the most expensive premium of any postcode area in Scotland and just -£16 off the highest premium for the area on record. Like Shetland, the Hebrides also saw a hike in prices over the quarter, with drivers seeing another +£73 (+10%) added to their bill, which now costs £797, on average.

Meanwhile, some respite is offered to drivers in Kirkwall, whose premiums have dropped a welcoming -20% (-£142) over the course of a year, bringing the average price down to £582. This is the second biggest percentage drop seen by all areas in the UK. Similarly, prices in the Hebrides dropped a whopping -15% (-£139) year-on-year, despite the region seeing hefty hikes over the last quarter.

While car insurance prices across the most of Scotland are showing very little sign of decreasing rapidly, both male and female drivers in some of the regions might be relieved to learn they are paying among some of the lowest prices in the UK. In fact, female drivers in the East & North East are paying the second cheapest premiums of all regions, forking out £540, on average. Similarly, men in the Scottish Borders have the second cheapest premiums for male drivers, paying £582, on average.

However, it’s no secret the cost of car insurance can depend on a driver’s age. And it seems that this can impact prices significantly. In fact, unsurprisingly, it is younger drivers who are bearing the brunt of price hikes, with 17-20 year old male drivers in the Highlands and Islands seeing the biggest quarterly monetary increases of +£43 (+2%), paying a whopping £2,030 on average. But this isn’t the most expensive premium paid in Scotland – drivers aged 17-20 in Central Scotland are yet again paying the most, and forking out an eye-watering £2,036, on average.

And it seems drivers will have to wait until they hit retirement before they start to see their premiums drop to lower levels. In particular, 66-70 year old male drivers in the East & North East are currently paying the cheapest premiums for men of any demographic, costing just £282, on average. Similarly, 66-70 year old female drivers in the Highlands & Islands, and East & North East are paying among the cheapest premiums of any demographic. Both pay £251, on average, per year, which is just +£2 more expensive than the cheapest premium recorded for women this quarter.

But it isn’t just car insurance prices that have stung Scottish drivers over the year, as the average cost of petrol has risen by 12.9p from 115.1p to 128.0p⁽³⁾, according to the Confused.com fuel price index. It is a similar picture for diesel, which is now 15.4p more expensive than 12 months ago, costing 131.6p on average per litre⁽³⁾. And with further taxes now imposed on diesel drivers this year, plus climbing interest rates predicted for 2018, it looks like it is going to be an expensive year for motorists.

Amanda Stretton, motoring editor at Confused.com, says: “While car insurance premiums across Scotland seem to be dropping, they are doing so at a much slower rate than the rest of the UK, dropping -£58 at most year-on-year, compared to the -£95 drop the average UK driver will have seen.

“But despite price reductions, it’s clear these savings aren’t always being passed on to drivers. In fact, our research shows that renewing with the same insurer could add as much as £41 to car insurance prices for drivers in Scotland. This goes to show how important it is for drivers to be shopping around at the point of renewal to see the benefits of falling prices. Worryingly, three in five (60%) motorists in Scotland didn’t do this last time they came to renew.

“Our data suggests drivers should consider shopping around  21 days prior to their renewal date, when car insurance prices appear to be at their lowest. And if we still can’t beat the renewal price their current insurer is charging, we’ll give them the difference, plus £20⁽⁴⁾.”