- Some drivers in Central Scotland and in East and North East Scotland are paying more than ever before for their car insurance. That’s as costs in areas such as Edinburgh and Dundee hit record-breaking figures.
- However, Glasgow is the most expensive area in all of Scotland. Drivers can expect to pay £601, following an annual increase of £107.
- And it’s a similar picture in the UK. That’s as prices increase by £100 to £629, on average.
- Louise Thomas, car insurance expert at Confused.com reminds drivers shouldn’t give in to auto-renewal quotes from their insurer. That’s as further research shows UK drivers are saving £59, on average, when shopping and switching(2)
- How can I save money on my car insurance? Confused.com provides top tips for getting cheaper car insurance, as cost of living crisis continues to impact the UK
The average cost of car insurance in Scotland has grown by 22% in just 12 months. That means drivers in the region are now paying on average £89 more than they did this time last year, new data reveals.
The increase means that drivers in Scotland are now paying £497 for their car insurance, on average. That’s according to the latest Confused.com car insurance price index, powered by WTW. Based on more than 6 million quotes over the quarter, it’s the most comprehensive car insurance price index for new business in the UK.
But some areas in Scotland might be pricier than others. The average cost of car insurance in Central Scotland is now £547, on average, following a £100 (22%) annual increase. This also makes it the most expensive region of Scotland overall.
For drivers in the East and North East, prices have increased to £456, on average, as insurance grew by £80 (21%) year-on-year.
And the latest data also reveals that these areas of Scotland are seeing record-breaking figures since Confused.com’s price index first began in 2006, so drivers might have noticed a recent spike in their premiums.
In Central Scotland, car insurance prices in Motherwell, Kilmarnock and Edinburgh all saw the highest costs recorded.
This means drivers were paying as much as £556, £483 and £488 respectively for their car insurance, on average. And for those living in the East and North East of Scotland, Dundee and Kirkcaldy also saw prices soar higher than years previously. These costs hit £472 and £453 respectively, on average.
Drivers in the Highlands and Islands have also seen rising costs. That’s as the average cost of car insurance in this part of the country has increased by 21%, to £448 on average. But the Scottish Borders is the cheapest overall. Despite a £70 (20%) annual increase, prices are £418, on average.
Despite some of the highest prices recorded in Scotland this quarter, these aren’t necessarily the steepest costs. In Glasgow, prices grew by £107 (21%) in 12 months, on average. That means prices are now £604 for drivers, on average, and the most expensive area in Scotland.
This quarter, Paisley also tops the list as one of the highest areas in Scotland, with a £95 (23%) annual increase. Drivers can now expect to pay around £501, on average. The cheapest area in Scotland is the Hebrides. Despite a 21% annual increase (£66), the cost of car insurance is £388, on average. This is 36% cheaper than Glasgow, the most expensive area in the country.
And it’s not just the annual increases that have packed a punch when it comes to insurance prices. In the past 3 months alone, the average cost of car insurance across Scotland has grown by 7%. That’s a £34 increase in premium costs, compared to motorists who took out insurance between July and September last year (Q3 2022). Here’s how the figures currently stand in each area:
Central Scotland:
| Postcode area | Average premium | Annual change (%) | Annual change (£) |
| Edinburgh | £488 | +22 | +87 |
| Glasgow | £604 | +21 | +107 |
| Kilmarnock | £483 | +25 | +97 |
| Motherwell | £556 | +24 | +107 |
Scottish Borders:
| Postcode area | Average premium | Annual change (%) | Annual change (£) |
| Dumfries | £416 | +20 | +69 |
| Galashiels | £421 | +21 | +72 |
East & North East Scotland:
| Postcode area | Average premium | Annual change (%) | Annual change (£) |
| Aberdeen | £449 | +20 | +73 |
| Dundee | £472 | +24 | +91 |
| Kirkcaldy | £453 | +22 | +82 |
Scottish Highlands and Islands:
| Postcode area | Average premium | Annual change (%) | Annual change (£) |
| Falkirk | £449 | +21 | +76 |
| Hebrides | £388 | +21 | +66 |
| Inverness | £417 | +22 | +74 |
| Kirkwall | £393 | +17 | +57 |
| Paisley | £501 | +23 | +95 |
| Perth | £422 | +22 | +75 |
| Shetland | £488 | +10 | +43 |
But what’s causing the price hikes? The current UK average of car insurance prices shows the highest in 3 years, following a £100 (19%) increase over the past 12 months.
The UK average now sits at £629, one of the most expensive since before the coronavirus pandemic. And while insurers had to readjust their pricing in recent years to reflect the return of normal driving habits, this past 12 months has also seen a real shake up in the insurance industry.
Last January, the Financial Conduct Authority (FCA) introduced new regulations to prevent insurers from overpricing loyal customers(1). This meant that all prices offered had to be fair and purely based on a driver’s profile. With companies no longer able to inflate returning customer costs, insurers have also had to readjust their pricing to make up for this. But, as a result, new business prices are likely to have increased.
For this reason, Louise Thomas, car insurance expert at Confused.com reminds drivers why they shouldn’t give in to the ease of auto-renewal. Even if the offer does look good. That’s as further research shows how drivers are still saving money, even if their renewal works out cheaper than the previous year.
To investigate, Confused.com conducted a survey of 2,000 UK drivers(2) that had their renewal in the last quarter. And the results show that 1 in 2 (50%) found their renewal price had increased compared to the previous year, by £46, on average.
Of these, 2 in 5 (40%) went on to shop around and switch insurers and save £55, on average. This goes to prove that shopping around could save money, even when prices appear to be increasing. However, 1 in 5 (20%) also found their renewal to be £38 cheaper, on average. Of these, more than 1 in 3 (34%) went on to shop around and switch insurers, saving £59 on average.
These savings are also being seen by customers, with significant savings being reported, even when renewal prices have been cheaper.
For example, Mr Allen saw his premium drop from £306 to £285. But, by shopping around he was able to secure a new price of £248. However, in most cases, customers have seen their renewal increase significantly, with shopping around saving a staggering £240 for one customer. In this case, the insurer increased their renewal by £200 to £720. However, shopping around saw them reduce their premium to £480.
While all drivers across the UK are seeing price increases this quarter, they’re impacting drivers differently. For example, male drivers are now paying £672, which is a 19% increase year on year – in line with the UK average. In terms of monetary value, this equates to a £44 increase in 3 months, and £105 year-on-year. Meanwhile, female motorists are now paying £557, following a 19% increase year on year. This means prices are now £90 more expensive, on average(3).
It’s a similar picture for UK drivers of different ages, with some facing major hikes in their insurance costs compared to others. Typically, younger drivers pay the most for their insurance, so it’s no surprise that their increases are above £200 for some. Although, 18-year-olds have been hardest hit, as their premiums soar by a staggering £307 (22%) over the past 12 months. This puts the average premium for drivers this age at £1,715, making it the most expensive age for car insurance.
This isn’t the highest price recorded for drivers of this age. Recent increases, however, has made this the case for both 28 and 33 year olds. A £130 (17%) increase for drivers aged 28 puts the average premium at £912 – the most expensive price on record for this age. Similarly, 33-year-olds are now paying £786, following a £123 price increase, to make it a record-high for this age group.
These increases are significant. But much like any other cost increases people are facing in the current climate, it’s also clear that there are savings to be made. Shopping around is likely to help drivers save against their renewal price, which is no doubt a welcome saving as the cost of living crisis continues. But there are also ways in which drivers can make changes to their policy in order to save money.
This includes:
- Paying annually instead of monthly – insurers often put an interest charge on monthly payments, so making a one-off payment avoids this
- Being accurate with your mileage – choosing a lower mileage may in fact work out more expensive, as this could be seen as a less experienced driver. Similarly, if you’re no longer travelling the UK every week, be sure to let your insurer know!
- Enhancing car security – anything that reduces the risk of your car being stolen will reduce the risk of claim, and this should be reflected in your price.
For more information please visit: https://www.confused.com/car-insurance/guides/tips-for-cheaper-car-insurance
Louise Thomas, car insurance expert at Confused.com comments: “The current financial climate is difficult for everyone right now, in all aspects of their life. With costs on the increase all around us, it can seem overwhelming at times to even know where to begin when it comes to cost-saving.
“Some costs can’t always be avoided, but one thing for sure is that the price we pay for car insurance isn’t a fixed cost. Choosing to automatically renew your car insurance with your current insurer might feel like the most stress-free and easy option, but financially you might not be better off. There’s lots of insurers in the market right now, so it’s likely that there could be better and more affordable options out there for you.
“But how will you know for sure? The best advice I can give is to shop around before you need to renew. This is the only way you can ensure that you’re paying the best price out there. In fact, we’re so confident that motorists can find cheaper deals by shopping around, that we guarantee to beat your renewal quote. And if we can’t, we’ll give you the difference, plus £20(4)! Either way, it’s a win-win for motorists!
“We also understand that things happen throughout the year, which could affect policies from time to time. But our tips on how to get cheap car insurance advises how you can ensure prices remain as low as possible. Things like multi-car policies or having a no-claims bonus are just a few ways in which you could save.”
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