Some motorists in Scotland feel the pinch of rising car insurance costs, while others benefit from savings
- Car insurance prices in Central Scotland and the Scottish Borders increase as much as +£26 (+4%) in three months, while other Scottish regions see slight drops of up to -£5 (-1%), despite UK-wide price hikes.
- Overall, the cost of car insurance across Scotland have increased the most of all UK regions in the past five years – increasing as much as 38%.
- As the post-Christmas pinch tightens, Confused.com urges drivers to check their renewal price and shop around before committing to renewing as more than half (53%) of Scottish motorists say their most recent renewal price was £47 more expensive that the previous year, on average.
- Car insurance calculator compares how much Scottish motorists are paying compared to the rest of the UK.
The rollercoaster that is car insurance prices in Scotland has left some motorists forking out more to keep their car on the road, while others are left with a few extra pounds to play with, according to new data.
Some motorists across Scotland saw as much as +£26 (+4%) on top of their price of car insurance compared to three months ago, while others will benefit from a -£5 (-1%) saving. That’s according to the most comprehensive car insurance price index in the UK based on more than six million quotes a quarter from Confused.com and powered by Willis Towers Watson.
Of the four Scottish regions, the price of car insurance accelerated the fastest in the Scottish Borders, increasing +£26 (+4%) compared to three months ago, on average. This means motorists in the region now pay £612 for car insurance, on average.
Motorists in Central Scotland have also seen an increase to their car insurance costs over the past quarter, with prices increasing +£22 (+3%) to £669, on average, making it the most expensive region in Scotland.
Meanwhile, some motorists have been given some respite from rising costs, which appear to be affecting the majority of the UK.
In fact, Scottish Highlands and Islands and East and North East Scotland are among the only two regions in the UK to see the price of car insurance decline over the quarter.
Drivers in the Scottish Highlands and Islands benefit from the biggest saving of the two regions, albeit a small decrease of just -£5 (-1%), on average. This means the average cost of car insurance in the region drops to £611. Motorists in the East and North East will also see a small decrease, as prices drop -£3 (0%) from last quarter’s price to £587, on average.
The average price of car insurance in Scotland – Q4 2018
| Region | Price | Quarterly change (%) | Quarterly change (£) | Year-on-year change (%) | Year-on-year change (£) |
| Borders | £612 | 4% | £26 | -2% | -£11 |
| Central | £669 | 3% | £22 | -3% | -£18 |
| East & NE | £587 | 0% | -£3 | -7% | -£47 |
| Highs & Isles | £611 | -1% | -£5 | -6% | -£38 |
Overall, this quarter’s prices are still cheaper than those paid by motorists in Scotland 12 months ago, with prices dropping as much as -£47 (-7%) year-on-year.
However, it seems the price of car insurance in Scotland is beginning to steady, as year-on-year changes tighten. In comparison, the biggest year-on-year decrease in car insurance across last quarter (Q3 2018) was as much as -£98 (-14%) – more than double the monetary value of the biggest decrease this quarter.
However, car insurance costs have become a heavy burden for motorists in Scotland, as they see the steep increases over the long term, as all four Scottish regions have experienced the biggest increases in car insurance prices over five years. In particular, prices in the Scottish Borders have increased by 38% since five years ago – the steepest increase of all regions.
It seems motorists across Scotland have started to feel the pinch of the increases, with more than half (53%) saying their most recent renewal price was £47 more expensive than the previous year, on average, according to a nationally representative survey of UK drivers.
The research comes in the wake of investigations by the Financial Conduct Authority (FCA) and Competition and Markets Authority (CMA), which are unveiling ‘loyalty penalties’ being charged to customers who choose to stay with the same provider, rather than shopping around. And with the post-Christmas pinch beginning to tighten and the UK in a period of economic uncertainty, Confused.com is urging drivers to check their renewal price and shop around to find a better deal.
To further incentivise drivers to do their research this January, Confused.com is giving motorists the chance to save even more by guaranteeing to beat their car insurance renewal price, or give them the difference, plus £20(4).
Overall, motorists across the UK are having to dig a little deeper, as the average price of car insurance rises by +£14 (+2%) in three months, costing UK drivers £774, on average. This is the second consecutive rise since a brief period of softening prices which began in Q3 2017. And prices are increasing at a faster rate than three months ago, when they crept up by just +1% (+£8) over the quarter (Q3 2018) in comparison.
To help motorists in Scotland see how these 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, and see how this compares to other areas of the UK.
No doubt Scottish motorists facing increases will frustrated, but none more so than those in Shetland, in the Scottish Highlands and Islands, which is one of few areas in the UK where prices increased year-on-year.
The average cost of car insurance in the area grew by +£53 (+7%) year-on-year – the steepest annual increase of all UK postcodes – and +£74 (+10%) over the past three months alone. Motorists in the area are now paying £781 for car insurance, on average, making it the most expensive area in Scotland.
Car insurance prices in the Hebrides, also in the Scottish Highlands and Islands, were also among those that have increased over the past 12 months. Motorists in the area are now paying +£39 (+5%) compared to this time last year, and +£53 (+8%) more than the previous quarter (Q3 2018), bringing the average price of car insurance in the area to £756.
Meanwhile, motorists in other areas in the Scottish Highlands and Islands are in fact facing savings on their car insurance. Those in Kirkwall, in particular, saw the biggest decrease in prices over the quarter, where prices dropped -£83 (-12%), and -£105 (-14%) year-on-year to £629, on average.
Looking to other areas of Scotland, prices in Dumfries, in the Scottish Borders, increased by +£40 (+7%) over the quarter, taking the average price of car insurance for drivers in the area to £612.
This is just -£22 cheaper than the most expensive price paid by drivers in Dumfries (Q3 2017). And if prices continue to increase at this rate, motorists in the area could soon be facing the most expensive car insurance costs on record(7).
And it’s no secret the cost of car insurance can depend on a driver’s age, and it is generally younger motorists across Scotland who are bearing the brunt of sky-high prices.
In particular, male motorists aged between 17 and 20 in Central Scotland are the only demographic in Scotland paying more than £2,000 (£2,020) for their car insurance.
However, it is motorists edging into retirement who were hit the hardest by price increases this quarter. In particular, the price of car insurance for female motorists aged 66 to 70 in Central Scotland increased +£45 (+14%) in the past three months. Although the price they do pay is still less than half that of the UK average premium, paying just £370, on average. Male drivers aged between 56 and 60 in the Scottish Borders also saw a significant increase this quarter, with their average cost of car insurance increasing by +£37 (+10%) since last quarter to £420. Although it appears this is the best age to be when it comes to buying car insurance, as generally motorists aged 61 plus have the cheapest premiums of all demographics in Scotland,
While car insurance is on the up for some motorists in Scotland, they may be breathing a sigh of relief, as motoring costs such as the price of fuel has eased, making January that little bit more bearable.
The average cost of fuel in the UK started to increase rapidly over the course of 2018, but has been dropping significantly since October, according to Confused.com’s fuel price index.Petrol in particular has become more affordable, dropping from 131p/l in October to 123p in December, on average (UK average). Meanwhile, the price of diesel dropped from 137p/l to 132p/l over the same period (UK average), offering some respite to motorists while car insurance prices continue to burden drivers.
Amanda Stretton, motoring editor at Confused.com comments: “Car insurance prices have increased for some drivers in Scotland, and this is the last thing they need as they face the post-Christmas pinch and as the UK enters a period of economic uncertainty due to Brexit.
“While other motorists have been fortunate to see slight decreases this quarter, there is no telling how long it will be before they start to rise again.
“If there’s a time to re-think and refresh your finances, it’s now. A recent investigation by the CMA revealed customers who stick with the same supplier for household services are facing a combined ‘loyalty penalty’ of £4.1bn a year. And with an impending FCA investigation into ‘hidden’ discrimination between car insurance customers on the horizon, the loyalty penalty issue appears to be wider than we first thought.
“Our own research reveals some customers in Scotland are paying the price for staying loyal to their insurer, with their renewal price coming in more expensive than the previous year.
“All motorists should be shopping around for the best deal, whether they are a new driver or renewing for the tenth year, as there is always another insurer out there willing to offer you a better deal.
“At Confused.com, we are so certain motorists will be able to find a better price than their current insurer is offering that we are offering to beat their renewal quote, or give them the difference, plus £20(4).
“Please don’t pay more than you have to – take a few minutes to check your renewal letter and get a cheaper price.”
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