Tag: car insurance

Car insurance prices in Scotland are now £775, following a £254 (48%) annual increase

Central Scotland saw the biggest annual increase of any UK region

  • Despite recent increases, drivers are seeing some respite. The latest data shows how prices have fallen by £30 (-4%,), on average, over the last 3 months.  
  • Glasgow and Motherwell are the most expensive areas in Scotland. Average prices are now £971 and £879, respectively, following annual increases. In Glasgow, prices increased by £341 (54%), on average, and by £303 (53%), on average, in Motherwell. 
  • Prices across the rest of the UK have all continued to see annual increases. And further research shows how 3 in 4 (75%) drivers who renewed in the past 3 months saw their renewal price increase by £94, on average.
  • Motor expert Louise Thomas at Confused.com helps drivers to understand why their car insurance prices are so high, and how they can save money by shopping around. 

Car insurance prices in Scotland are up by £254 (48%) in just 12 months. That means the average price is now around £775. 

And it’s drivers in Central Scotland who could be seeing the biggest increases overall. That’s as prices are now £871, on average, following £298 (52%) rise. Not only is this the most expensive region in Scotland, but it’s also seen the biggest annual increase in comparison to other UK regions. 

That’s according to the latest car insurance price index from Confused.com, powered by WTW.

Based on more than 6 million quotes per quarter, it’s the most comprehensive car insurance price index for new policies in the UK. However, prices in the country stalled somewhat by £30 (-4%) in the past 3 months, offering a brief respite to drivers. But despite this slight U-turn, prices do remain expensive for drivers as financial pressures continue to mount up.  

And how much a driver pays continues to vary from region to region.  The East and North East regions saw an annual increase of £220 (46%), making prices now £701, on average. Prices in the Highlands and Islands are now £674, on average, following a £201 (43%) annual increase. And drivers in the Scottish Borders are benefiting from the cheapest prices, despite a £206 (46%) increase in 12 months. Average prices are now £634. 

RegionAverage £Annual £ changeAnnual % changeQuarterly £ changeQuarterly % change
Central Scotland£871£29852%-£26-3%
East & North East£701£22046%-£34-5%
Highlands & Islands£674£20143%-£38-5%
Scottish Borders£634£20648%-£23-3%

When looking closer at areas within each region, Glasgow came out on top as the most expensive area for drivers overall. Following a £341 (54%) annual increase, prices are now £971, on average. Motherwell also topped the list as one of the most expensive areas in Scotland, with average prices now £879. That’s as prices increased by £303 (53%) in comparison to 12 months ago.

Here’s a full breakdown of the latest car insurance prices across Scotland: 

Central Scotland – 

Postcode areaAverage £Annual £ changeAnnual % changeQuarterly £ changeQuarterly % change
Edinburgh£769£25048%-£37-5%
Glasgow£971£34154%-£27-3%
Kilmarnock£765£26252%-£6-1%
Motherwell£879£30353%-£23-3%

East and North East:

Postcode areaAverage £Annual £ changeAnnual % changeQuarterly £ changeQuarterly % change
Aberdeen£699£21845%-£29-4%
Dundee£732£23547%-£34-4%
Kirkcaldy£683£21145%-£41-6%

Highlands and Islands:

Postcode areaAverage £Annual £ changeAnnual % changeQuarterly £ changeQuarterly % change
Falkirk£689£21044%-£42-6%
Hebrides£504£9824%-£73-13%
Inverness£620£18141%-£28-4%
Kirkwall£606£18845%£132%
Paisley£751£22844%-£49-6%
Perth£644£19744%-£30-4%
Shetland£674£16432%-£81-11%

Borders:

Postcode areaAverage £Annual £ changeAnnual % changeQuarterly £ changeQuarterly % change
Dumfries£635£21049%-£25-4%
Galashiels£632£19946%-£21-3%

The latest pricing follows similar trends across the UK. According to the latest data, the average price in the UK is now £941, following an increase of £284 (53%) in comparison to this time last year. But the data also shows a drop in pricing over the past 3 months of £54 (-5%). So although this can be a small sigh of relief for drivers, it’s likely many are still having to pay high prices. 

And it seems that most drivers are recognising the impact on the steep increases over the past year. Further research by Confused.com(1) found that more than 2 in 5 (43%) UK drivers claim they are paying more for their insurance now than ever before. And only 1 in 7 (15%) claim they are happy with the amount they pay for their car insurance.

Despite their loyalty, renewing customers are also seeing their prices increase significantly. But some were able to save money by shopping around. According to the research, of those who received their renewal between January and March this year, 3 in 4 (75%) received a more expensive price compared to the previous year. According to the research, these drivers saw their renewal price increase by £94, on average. After receiving their price, almost half (45%) went on to shop around and switch insurers, saving £90 compared to last year’s price, on average. 

This shows that even while premiums are still high, drivers could save money by switching to another insurer, rather than sticking with their renewal. 

But some drivers will of course see more expensive car insurance prices than others. And in some cases, drivers are actually paying significantly more now than they were at a younger age. This is because car insurance prices spiked last year as the insurance industry recovered from the turbulence of COVID-19. For example, a 22-year-old driver is now paying £667 more than they possibly were 5 years ago. 

Today, a 22-year-old can expect to pay £1,930 for their car insurance. But in comparison, 5 years ago, a 17-year-old was paying £1,263, on average. This is true for all age groups. In some cases, they are now paying hundreds of pounds more than they would have at their age 5 years ago, even though they may have gained more driving experience and built a no claims bonus.

Difference in prices over 5 years

Age now (Q1 2024)Premium now (Q1 2024)Age 5 years ago (Q1 2019)Premium 5 years ago (Q1 2019)Difference
22£1,93017£1,263+£667
35£1,12630£751+£375
45£89240£615+£277
55£66650£489+£235
65£54560£421+£204

How much a driver is paying for their insurance very much depends on where they live, or how old they are. For example, men are now paying £1,001 for their car insurance, on average. While this is a £60 (-6%) drop in the average price compared to 3 months ago, this is still £299 (43%) more expensive than premiums for male drivers 12 months ago. In comparison, female drivers are paying £841 for their insurance – a £258 (44%) increase year-on-year. This has, however, dropped by £43 (-5%) in the past 3 months.

Some age groups are also paying out more for their insurance, with younger drivers typically bearing the brunt of expensive premiums. For example, 18-year-olds are now paying £3,145 for their car insurance, which is an increase of a staggering £1,300 (70%) in the past 12 months. For drivers of this age, prices only dropped by £17 (-1%) in the past 3 months, which is significantly lower than the average decrease in the UK.

While prices dropped for most, the price for 17-year-olds is the only age group to have increased this last quarter. Motorists of this age are now paying £2,919, on average, for their car insurance. This is £1,307 (81%) more expensive year-on-year, and £42 (+1%) higher than 3 months ago. This is the most expensive price recorded for this age group.  

Meanwhile prices for 28-year-olds fell the most over the past 3 months, with premiums now 9% (-£139) cheaper, on average. This brings the average premium for drivers of this age to £1,353. However, this is still £403 (42%) more expensive year-on-year.

Even with prices seemingly starting to drop, drivers are still paying over the odds for their premiums. But why are prices still so high? Inflation has played a key role in the rise of car insurance costs, due to the impact on the cost of repairs and claims. Since the end of the pandemic, the number of cars on the road has increased to a normal, if not inflated level.

This means the risk of accidents and claims is a lot higher than before. And the amount insurers are having to pay for these claims has increased too, as parts and labour costs are all impacted by inflation.

Similarly, cars are holding their value for longer, or are generally equipped with more technology or expensive equipment. This means the cost to replace a car is more than before too. So while inflation remains high, insurers are paying more to cover the cost of claims. This is reflected in the prices they’re offering drivers for their car insurance.

There are some tips drivers can try to keep costs down when it comes to renewal:

  • Use a price comparison site – When it comes to keeping costs down, the best thing you can do is compare prices. That way you can ensure you’re getting the best deal to suit your needs and not paying more than you need to. And it’s likely that you can make a saving. 
  • Pay for your car insurance annually – If you can afford it, pay for your insurance in one go rather than monthly. That’s because insurance companies often charge interest for spreading the cost of your cover over the year.
  • Increase your voluntary excess – Increasing your voluntary excess can help you get cheaper car insurance. But you need to make sure you can afford to pay it, if you need to claim.
  • Be accurate with mileage – Generally, the more miles you drive, the more likely you are to have an accident and make a claim. This means the higher your mileage, the more you pay for your car insurance. So, driving fewer miles can be a great way to save money on your car insurance policy. But don’t assume that a low mileage always means low prices. If you barely drive at all, your insurance company could see that as a risk as well. 
  • Enhance your car security – The harder it is to steal your car, the less of a risk it is. This usually means cheaper car insurance. There are several ways to improve your car security including:
    • Installing a Thatcham-approved car alarm or immobiliser, if it doesn’t already have one
    • Adding secondary levels of security like a steering lock
    • Parking overnight in a secure, well-lit car park, or at home in a garage or driveway, if possible.

For more advice on how to reduce costs, visit Confused.com’s guide on how to get cheaper car insurance.

Louise Thomas, motoring expert at Confused.com car insurance comments: “For the first time in a while car insurance prices have stalled slightly for most drivers, and this may come as a relief. However, prices are still incredibly high and so people can expect to see their price increase compared to the previous year. 

“The important thing to remember is that you don’t have to accept your renewal, especially as we know from our research that shopping around can find you a cheaper price.

“And on top of this, there are additional ways you can save as well. Choosing a higher voluntary excess can bring down your overall premium – but remember to only choose a price you can afford should you need to make a claim.

“And if you can, paying annually will save you money too, as monthly payments can incur an interest charge. If these aren’t viable options, things like increasing your security or reviewing your mileage to be more accurate could make a difference when quoting.

“Ultimately, shopping around is the only way to know you’re paying the cheapest price available to you. With prices so high, it’s a very competitive market. So if you look around, there’s likely to be an insurer out there willing to offer a cheaper price.

“We’re so certain that we offer a guarantee to beat your renewal, or pay you the difference, plus £20(2). In this scenario, you not only get the best price, but you also get more cash. So there’s nothing to lose and lots to be gained.”

Car insurance costs squeezing British motorists

British motorists are being given top tips on how to save money on their car insurance policy after concerns premiums are on the rise.

In a year many goods have increased in price, car insurance premiums are no exception.

Insurance price comparison specialists Quotezone.co.uk are urging drivers to take steps to lower their premiums.

One of the most important money-saving tips is to do your homework, compare different providers, and never let a policy automatically renew. 

Drivers need to strike a good balance between cost and coverage, ensuring the policy has all the essentials they need at a competitive price.

Among the list of money saving hacks is shopping early, improving vehicle security, building up the no claims bonus and being mindful of where the car is kept overnight.

These simple tips can come in very handy for those looking to make cutbacks on their insurance expenses without making any major changes.

Quotezone.co.uk Founder and CEO Greg Wilson said: “It’s concerning to see car insurance prices on the rise.  The soaring cost of repairs, materials and even paint, has all had a knock-on effect on premium price.  The volume of claims is also increasing, partly due to the extreme weather we’ve witnessed recently.

“However, we can help, there are ways to save and using our comparison site is an ideal platform to compare products, to make sure you’re getting the cover you need, at a price you can afford.

“While aiming to secure cost-effective coverage, it’s crucial for drivers to ensure they’re not compromising on protection in case of accidents or unforeseen circumstances.  Often there’s very little difference in price between third party cover and fully comprehensive, so if you can, it’s best to safeguard your finances and go fully comprehensive.

“It’s also important to always give accurate information when getting a quote, as any incorrect information can invalidate your policy and leave you unprotected.”

Here are Quotezone.co.uk’s top 10 tips to help get a cheaper insurance premium:

  1. Shop early

It’s better to plan ahead and buy your policy early to lock in the price, as premium prices tend to increase the closer you get to your renewal date. The optimal time for bagging the cheapest deal is three weeks before the new policy is due to start.

  1. Pay annually

If possible, it’s best to pay the entire annual premium upfront to save hundreds in the long term. Insurance providers look at monthly instalments as loans and can have high interest rates.  Consider paying it all in one go to knock cash off your policy.

  1. Improve vehicle security

Most vehicles should have an alarm and immobiliser as standard but it’s worth installing anti-theft devices such as a tracker and dashcam – it will upgrade the vehicle’s security and could get you cheaper premiums. Get the policy quotes first to consider whether the extra cost of fitting the devices will be worth it for the insurance savings.

  1. Review your policy

Make sure to only pay for what you need and avoid driving up the premium by adding unnecessary add-ons – such as annual mileage, make sure your estimation is accurate.  Also check your vehicle use, if you use it to drive to the train station for your commute to work it still needs to be noted as used for your daily commute.  If you now work from home full-time, it might be worth switching the vehicle use to social only, it could result in big savings.

  1. Add another driver

If you add another driver to the policy then you may be eligible for a multi-driver discount, plus you can split the cost of the premium. It can be particularly beneficial if the other person is an experienced driver with a clean record as they pose less risk to the insurance company, which could lead to lower premiums.  Just make sure the person who uses the vehicle the most is noted as the main driver, incorrect use of this information is known as ‘fronting’ and is actually illegal, likely resulting in a criminal record and a void insurance policy.

  1. Park in a safe place

Car owners that make use of their garages, driveways or carports for overnight parking can make big savings on their car insurance – parking on driveways rather than on the road can save you over £140 on average every year. Carport owners can do even better, with savings coming in at £230 on average.

  1. Build up your no claims bonus

Avoid filing small claims to build up your no claims bonus. Opting to pay for minor damages out of your own pocket instead of filing a claim can prevent potential premium hikes.

  1. Opt for a telematics product or black box

Getting a telematics device or black box fitted allows drivers to showcase their safe driving which can lead to cheaper premiums. This is a good option for young drivers and those with previous motoring convictions who are charged more as they are seen to be more at risk. By using the device it’s giving the insurance company data on which to base its risk analysis.

  1. Avoid penalty points

Penalty points on your licence may not only result in a steep fine but will also bump up your insurance costs too. Drivers can expect premiums to rise by 5% for three points and 25% for six points if they’re starting from a clean licence.

  1. Compare everything

Don’t allow your policy to renew automatically or settle for the first insurance quote you receive. Take the time to do your research and compare rates from multiple sources to get the cheapest price on your premium. You can save time and utilise price comparison websites to help you compare providers, compare products and of course compare prices.

To compare up to 110 UK car insurance providers visit:

https://www.quotezone.co.uk/car-insurance.

Cost of car insurance in Scotland accelerates by £309 as drivers face record-breaking premiums


The average price of car insurance in Scotland is now £806, following a 62% increase in the past 12 months

  • Significant increases across the 4 main Scottish regions put prices at the highest on record, with some drivers paying £897 for their car insurance.
  • In particular, motorists in Central Scotland are seeing the steepest changes to their premiums, with year-on-year prices increasing the most of all UK regions (64% / £350).
  • It’s a similar picture across the rest of the UK, where drivers are now paying £995, on average. That’s a £366 (58%) increase compared to 12 months ago.
  • But further research(1) suggests that those opting to renew could be paying even more. Three in 4 (75%) UK drivers who received their renewal last quarter saw their price increase by £93, on average.
  • Why are car insurance prices so high? Louise Thomas, car insurance expert at Confused.com, explains why drivers are seeing such a significant shift in their costs.

New data has revealed that drivers in Scotland face record high car insurance costs, as the average price in Scotland reaches £806.

That’s following a £309 (62%) increase in prices in the past 12 months, according to the latest car insurance price index by Confused.com, powered by WTW. Based on more than 6 million quotes per quarter, it’s the most comprehensive car insurance price index for new business premiums in the UK.

Significant increases across the region means that some drivers are paying out as much as £897 for their car insurance. This is the case for those living in Central Scotland, where prices have accelerated at a staggering pace over the past 12 months. According to the data, prices in this Scottish region rose by 64%, equivalent to £350, in the past 12 months. This is the steepest increase seen across all UK regions when it comes to the percentage of their premium. This makes it the most expensive Scottish region for car insurance.

Those in East and North East Scotland have seen a similar change to their car insurance costs. Prices in this region increased by 61%, or £279, in the past 12 months. This puts the average cost of insurance here at £735.

Meanwhile, those in the Scottish Highlands and Islands, and Scottish Borders pay slightly less, despite premiums also increasing significantly in the past year. The average cost of car insurance in these regions is now £712 and £657, respectively.

On a more granular level, some drivers in Central Scotland have seen even bigger shifts in their prices, compared to the regional average.

Those in Glasgow and Edinburgh have seen the steepest changes in their premiums in the past 12 months, compared to the rest of the UK areas. The average price of insurance in Glasgow, for example, increased by 65% (£394) over the last year.

While a 65% increase in Edinburgh meant prices rose by £318, on average. This means drivers in these 2 Scottish areas can now expect to pay £998 and £806 for their car insurance, respectively, on average.

Prices in Central Scotland

RegionAverage £Annual £ changeAnnual % changeQuarterly £ changeQuarterly % change
Central Scotland£897£350
64%
£77
9%
East & North East£735£27961%£609%
Highlands & Islands£712£26459%£589%
Scottish Borders£657£23957%£559%

Significant annual increases in premiums can be seen across the rest of the UK. The average driver is now paying £995 for their car insurance, on average – the highest price on record in the UK.

According to the data, prices have increased by an average of £366 (58%) in the past 12 months. However, in the past 3 months, prices only increased by 8%, or £71, on average. While this is a significant change over a short time, it’s still considerably lower than the changes over the last 6 months. Between March and September last year, prices increased by 41%, or £267, on average. This worked out at increases of 18% and 19% for each 3 month period

However, as it stands, prices are still rising, and some drivers could be paying significantly more for their premiums if they choose to renew. That’s as further research suggests renewing customers are now even more likely to see significant annual price increases.

In a survey of 2,000 UK drivers(1), around 3 in 4 (75%) of those who renewed their policy in the last 3 months saw their premium increase. This is around 10% more than those who renewed at any other point last year, on average. And those who received a higher renewal price were quoted £98 more than the previous year, on average.

In comparison with Confused.com’s data, this is more expensive than the price they could be paying if they took out a new policy. Of these, 37% went on to shop around and took out a new policy with a different insurer, saving £96, on average. Meanwhile, only 7% received a cheaper renewal price, on average.

So while prices are up across the board, it’s clear from the data that those who choose to shop around rather than renewing their policy could be better off. And this could be a key consideration for some drivers, who are paying significantly more than the UK average.

Motorists aged between 17 and 20 have seen their premiums rise by more than £1,000, on average, compared to 12 months ago. For 17 year olds, this is a 98% increase year-on-year, equivalent to £1,423, on average. This brings the average price of a policy to £2,877.

Meanwhile, a £1,447 (84%) increase in prices for 18-year-olds means they’re paying more than £3,000 for the first time. Their premiums reached £3,162 on average. Hefty increases also means that drivers up to the age of 43 can expect to pay £1,000 or more for their car insurance, on average.

It’s a similar picture for different regions across the UK too, with some paying significantly more than others. In particular, prices in Northern Ireland have tipped over the £1,000 mark for the first time on record. This is after prices increased by £383 (57%) in the past 12 months. This brings the average premium in the region to £1,051. Meanwhile, a 64% (£350) increase in prices in Central Scotland means premiums have doubled in 2 years, with the average driver now paying £897.

However, London remains the most expensive region in the UK for car insurance. Drivers in Inner and Outer London pay £1,607 and £1,291 respectively, on average.

With prices increasing significantly, it’s a bleak time for drivers and their car insurance. That’s even if they’re able to save compared to the year before. But experts at Confused.com urge drivers to review their policies to see if there are other ways they can save. Especially as the cost of living crisis continues to impact many.

There are some tips drivers can try to keep costs down when it comes to renewal:

  • Use a price comparison site – When it comes to keeping costs down, the best thing you can do is compare prices. That way you can ensure you’re getting the best deal to suit your needs and not paying more than you need to. And it’s likely that you can make a saving.
  • Pay for your car insurance annually – If you can afford it, pay for your insurance in one go rather than monthly. That’s because insurance companies often charge interest for spreading the cost of your cover over the year.
  • Increase your voluntary excess – Increasing your voluntary excess can help you get cheaper car insurance. But you need to make sure you can afford to pay it, if you need to claim.
  • Be accurate with mileage – Generally, the more miles you drive, the more likely you are to have an accident and make a claim. This means the higher your mileage, the more you pay for your car insurance. So, driving fewer miles can be a great way to save money on your car insurance policy. But don’t assume that a low mileage always means low prices. If you barely drive at all, your insurance company could see that as a risk as well.
  • Enhance your car security – The harder it is to steal your car, the less of a risk it is. This usually means cheaper car insurance. There are several ways to improve your car security including:

= Installing a Thatcham-approved car alarm or immobiliser, if it doesn’t already have one

= Adding secondary levels of security like a steering lock

= Parking overnight in a secure, well-lit car park, or at home in a garage or driveway, if possible

For more advice on how to reduce costs, visit Confused.com’s guide on how to get cheaper car insurance.

But why are prices so high at the moment?

Inflation has played a key role in the rise of car insurance costs, due to the impact on the cost of repairs and claims. Since the end of the pandemic, the number of cars on the road has increased to a normal, if not inflated level. This means the risk of accidents and claims is a lot higher than before.

And the amount insurers are having to pay for these claims has increased too, as parts and labour costs are all impacted by inflation. Similarly, cars are holding their value for longer, or are generally equipped with more technology or expensive equipment. This means the cost to replace a car is more than before too.

So while inflation remains high, insurers are paying more to cover the cost of claims. This is reflected in the prices they’re offering drivers for their car insurance.

While it seems from Confused.com’s data that there’s some respite from steep increases, the car insurance market remains incredibly volatile. This is why it’s so important that drivers are shopping around and comparing policies. By doing this, they can make sure they’re getting the best price, as prices are probably going to be high for some time.

Louise Thomas, motoring expert at Confused.com car insurance comments, “Like a lot of our expenses, car insurance is getting more costly. And this is to be the case for some time.

“Claiming is one of the biggest factors when it comes to insurers pricing up policies. And with the cost of paying out for claims being considerably high, insurance prices are going to be too.

“While it looks like increases could be slowing down for now, we still need to be doing what we can to keep these costs as low as possible. Things like increasing security, reviewing how many miles you drive or adjusting your excess could bring your overall cost down. But it’s important to remember that the information you’re providing should be accurate otherwise you risk invalidating your policy if you need to make a claim.

“Ultimately, shopping around is the only way to know you’re paying the cheapest price available to you. With prices so high, it’s a very competitive market. So if you look around, there’s likely to be an insurer out there willing to offer a cheaper price.

“We’re so certain that we offer a guarantee to beat your renewal, or pay you the difference, plus £20(2). In this scenario, you not only get the best price, but you also get more cash. So there’s nothing to lose and lots to be gained.”

How young drivers can save in 2024

2023 was particularly harsh on young drivers, with premiums soaring by over 50% as the cost-of-living pressures took effect.

The sky-high cost of learning to drive combined with these higher insurance premiums and new emissions costs for older cars, are all making it a struggle for young drivers to get on the roads.

Free Man Inside Vehicle Stock Photo

Data shows the average car insurance premium for young 18-year-old drivers increased to £1207 in 2023. 

The experts at Quotezone.co.uk  have revealed ten savings hacks to help young drivers give their finances a fresh start for the new year.

One of the most important things for young drivers is to be safe and avoid penalty points, a fifth of convicted drivers in the UK have been driving for a year or less – according to a sample of over 15,000 convicted drivers, analysed by Quotezone.co.uk. 

Penalty points on a licence may not only result in a steep fine but will also bump up the insurance costs. Drivers can expect premiums to rise by 5% for three points and 25% for six points if they’re starting from a clean licence.

Young drivers or those with penalty points may be able to get cheaper insurance by opting for a telematics policy, or black box insurance.

Black box insurance starts collecting data on their driving immediately, if they’re a safe driver, this can help the insurer see them as less of a risk and may result in a more competitive price.  Although, like all premiums this year, prices are on the rise, in 2023 telematics was still able to save young drivers an average of £75 annually. 

Age group 18-24NO telematicsYES telematics
2021£1199£938
2022£1047£1050
2023£1230£1155

Quotezone.co.uk CEO Greg Wilson said:  “Young drivers had a tough 2023 with delays to driving tests and backlogs for lessons plus the rising cost of everything associated with motoring – insurance, repairs, fuel – we’re hoping 2024 is a much better and cheaper year for those new to the road.

“There are lots of things young drivers can do to help bring the cost of driving down, from knowing how to avoid even the most unusual fines and penalty points to installing a black box and keeping modifications and mileage to a minimum. 

“We’re researched the top 10 ways we think will help young drivers save in 2024 along with the essentials such as shopping around and comparing product details, annual payments if possible and reviewing when exactly is the best time to buy, normally three weeks before the policy is due for renewal is the most competitive.

“Passing your test and taking to the road for the first time is a rite of passage and it would be worrying if new drivers started to struggle to make driving a reality due to cost, hopefully our money saving tips go some way to making a more affordable 2024.”

Quotezone.co.uk’s Top ten hacks that could help young drivers save:

1.         Do check your mileage

When taking out insurance, you will be asked to estimate your annual mileage. The costs will rise in incremental bands so the more miles you drive, the more you pay so try to be accurate and realistic with your prediction.

2.         Do park in a safe place

Car owners that make use of their garages, driveways or carports for overnight parking could make big savings on their car insurance – parking on driveways rather than on the road can save you over £140 on average every year and carports could save you even more, with £230 savings on average.

3.         Do consider switching to a smaller engine

Be sure to check your vehicle’s engine size and horsepower, both can impact the cost of your premium. Also, some small engines are turbocharged and that can give them more power than might be expected, which will likely cause the premium to increase.

4.         Do keep modifications to a minimum

It comes as no surprise that adding a custom exhaust or putting in lowered suspension might cause insurance premiums to rise, but even seemingly innocuous changes such as adding branding to a vehicle can affect the cost.

5.         Do consider a black box

A telematics policy, or black box insurance – starts collecting driving data immediately, this can help the insurer with their risk analysis, safer driving increases the chances of a competitive price for young drivers.

6.         Don’t over pack the vehicle

Packing items above the seat line will impair vision, while heavy loads are likely to affect a car’s handling and stopping distances.  Overloading a car past its capacity is a punishable offence, with a fine of up to £300 and 3 points. Driving without full visibility out all windows is also punishable and could result in a £50 fixed penalty.

7.         Don’t forget your sunglasses

Sunglasses are labelled with a ranking from zero to four in order to determine their strength and the time of day they can be worn. The average pair of sunglasses is categorised as a number two – these are recommended for daytime driving.  Driving with inappropriate eyewear could be detrimental to other road users, leaving drivers unable to detect dangers.  Motorists could be hit with a £100 on-the-spot fine and up to three penalty points for driving without due care or attention. 

8.         Don’t use the wrong fuel

Misfuelling is one of the most expensive mistakes motorists make. Pumping diesel fuel into a petrol car can lead to engine failure, leaving motorists to pick up the maintenance costs.   Rule 97 of the Highway Code states before drivers set off, they should ensure they have ‘sufficient fuel or charge for your journey, especially if it includes motorway driving’.  Careless or dangerous driving caused by low fuel will see motorists face fines of up to £100 and three points on their license. 

9.         Don’t leave the car switched on while waiting for friends

‘Idling’ or leaving the engine running unnecessarily while stationary on a public road goes against Section 42 of the Road Traffic Act.  Drivers risk a £20 penalty notice that will double if not paid in full within 28 days.  According to research conducted by Quotezone.co.uk, almost 11% of drivers fail to turn off their engines while waiting.** 

10.       Don’t splash pedestrians

Splashing pedestrians is actually illegal under section three of the Road Traffic Act, 1988 – and is considered to be driving ‘without reasonable consideration for other persons using the road’ – resulting in a fine of £100 and three penalty points on the licence, in some cases, fines can reach as much as £5,000 for driving without reasonable consideration for others on the road.

Quotezone.co.uk can help if you’re looking for learner drivers or  young drivers insurance.  If you live in Northern Ireland, CompareNI.com can help.  

Car insurance prices jump by £275 (59%) in just twelve months

Following steep increases, drivers are now paying a record-breaking £738, on average

  • It’s not just over the past year that we’ve seen the biggest increase. Prices have also increased by £114 (18%), on average, in the past 3 months alone.
  • All of Scotland is seeing the highest prices ever recorded, but it’s drivers in Central Scotland who are likely to be paying the most. Following a £315 (62%) annual increase, prices are now £820, on average. The Scottish Borders is the cheapest, despite increasing by £211 (54%) in just 12 months. Prices are now £602, on average.
  • Glasgow is the most expensive area in Scotland overall, with prices now £908, on average. That’s as prices increased by £344 (61%) in 12 months. And despite prices rising by £187 (51%) in 12 months, Hebrides is the cheapest, with average prices now £555.
  • It’s a similar picture across the UK as all regions are seeing the highest prices ever recorded on the Confused.com car insurance price index. And with financially challenging times ahead, there millions of drivers risk becoming priced off the road.
  • Although prices are becoming more expensive, drivers who recently shopped around were able to save £88(1), on average. Motor expert, Louise Thomas at Confused.com car insurance explains why prices are increasing and offers ways drivers can save money.

The cost of car insurance in Scotland is up £275 (59%) in just 12 months. That means drivers in Scotland are now paying a record-breaking £738, on average, for their car insurance. That’s according to the latest (Q3 2023) 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 comprehensive policies. And it’s not just annual figures that have seen the biggest increase. In the past 3 months alone, prices in Scotland have grown £114 (18%), on average. That’s the second consecutive quarter prices have increased so substantially, meaning prices are the highest recorded since the index began in 2006.

Prices are on the rise across the whole of Scotland, but Central Scotland is the most expensive region overall. Prices have increased by £315 (62%) compared to this time last year, making the average price of car insurance now £820.

In the East and North East, average prices are now £675 following an annual increase of £244 (57%). And in the Highlands and Islands, prices are £654, on average, following an increase of £234 (56%) in 12 months. But the Scottish Borders is the cheapest region, despite an annual increase of £211 (54%). That means prices are now around £602.

When looking at specific areas that could impact drivers the most, Glasgow has the most expensive car insurance prices in the whole country. Following an annual increase of £344 (61%), drivers could now expect to pay £908, on average.

And for the cheapest car insurance prices, it’s drivers in the Hebrides who will benefit the most. Despite an annual increase of £187 (51%), prices are still the cheapest in all of Scotland. Prices in this area are now around £555, on average.

Here’s a full overview of how prices currently stand in Scotland:

Borders:
Postcode areaAvg £YOY %YOY £Q %Q £
Dumfries£597+52%+£205+17%+£87
Galashiels£608+56%+£218+18%+£94
Central :
Postcode areaAvg £YOY %YOY £Q %Q £
Edinburgh£733+63%+£284+17%+£107
Glasgow£908+61%+£344+20%+£151
Kilmarnock£714+63%+£277+16%+£101
Motherwell£833+65%+£328+19%+£134
East and North East:
Postcode areaAvg £YOY %YOY £Q %Q £
Aberdeen£675+56%+£241+18%+£104
Dundee£701+59%+£259+19%+£114
Kirkcaldy£658+57%+£239+18%+£101
Highlands and Islands:
Postcode areaAvg £YOY %YOY £Q %Q £
Falkirk£667+59%+£247+16%+£94
Hebrides£555+51%+£187+19%+£91
Inverness£591+50%+£196+14%+£72
Kirkwall£565+54%+£197+23%+£104
Paisley£737+58%+£270+18%+£112
Perth£616+55%+£218+18%+£92
Shetland£702+64%+£275+10%+£61

And it’s not just in Scotland where drivers can expect to pay the highest prices on record. Across the UK, all regions are seeing prices soar, proving just how volatile the car insurance market currently is.

And with a cost-of-living crisis still at the forefront of conversation, the rate of inflation for car insurance prices could be damaging for many. The latest data shows how millions of drivers risk being priced off the road if prices continue to rise as quickly as they currently are. 

Why are prices increasing?

There are many reasons why car insurance prices are increasing so rapidly and drivers may feel they’re being penalised unfairly. Especially as the FCA introduced the General Insurance Pricing Practices (GIPP)(2) to ensure pricing was fairer. But adjusting to life after the pandemic and recent industry changes have both had a huge knock-on effect on how much drivers are paying. 

The rise of electric vehicles (EVs) continues to grow in popularity, especially due to the government’s ambitious Net Zero plans. Some manufacturers have even announced that they’ll only manufacture EVs going forward. But EVs often come with a hefty price tag and not all drivers can afford them. They often come with enhanced technology features as standard, so can cost the insurer more to repair or replace. But the pandemic has impacted its supply chain, meaning there are often backlogs for drivers. EVs also generally have quicker acceleration speed than other vehicles, so could appear riskier to insurers. 

And because EVs aren’t affordable for everyone, second-hand vehicles are also keeping their value for longer, especially since the pandemic. But if a driver has an accident and their vehicle is a write off, this now costs insurers more to pay out. There are also lots more drivers returning to normal driving habits since the pandemic, so naturally there are more drivers on the road.

This means claims frequency is increasing, so insurers are paying out more than they have in recent years. All of this plays into the overall risk factor linked with insurance, which is why drivers are likely to see an increase. 

How much are UK drivers paying elsewhere?

All regions in the UK are seeing the highest prices on record, but it’s drivers in London that are paying the most expensive rates overall. Inner London is the steepest, with the cost of car insurance now £1,503, on average. That means prices have increased  by £567 (61%) in just 12 months. 

Outside of London, drivers in Manchester and Merseyside are seeing annual increases of around £417 (57%). That makes average prices £1,154. And in the West Midlands, the cost of car insurance is £1,139, on average, following a £442 (63%) increase. 

And once again, younger drivers are taking the brunt of the most expensive prices. But it’s those aged 18 who continue to pay the most, with average prices now £2,995. That’s increased by 89% (£1,414) in the past 12 months and by 25% (£591) in the last 3 months, on average.

But 17-year-olds might have the biggest surprise of all. That’s as their insurance prices have almost doubled in the past 12 months. Their car insurance prices have increased by £1,262 (93%), on average, meaning prices are now £2,613. Data also shows that drivers aged 38 and under aren’t paying less than £1,000, on average, for their car insurance. 

And although insurers can’t price by gender, males still see the most expensive prices(3). The average price for men is now £987, following an annual increase of £359 (57%). And for women, prices have increased by £304 (59%). That makes average prices for them £820. 

Further research by Confused.com of 2,000 UK drivers(1) also found that the majority were feeling the pinch. Around 3 in 5 (63%) drivers who renewed in the past 3 months (July to September) had a more expensive price of around £87 more. That’s despite 1 in 4 (26%) saying they had a clean licence and almost 1 in 3 (28%) saying they had 1 or more year’s no claims. Almost a third (28%) also said that they weren’t sure why prices were on the rise. 

How can drivers keep costs down?

With all of this to factor in, it’s understandable that drivers may feel frustrated. Especially as prices seem to be going up in all areas of everyday life right now. But drivers can still make savings, even if the initial price is more expensive than first anticipated. 

Data shows how drivers with a more expensive renewal between July to September 2023 were able to save around £88 when using a price comparison site. And even though 9% of drivers said they had a cheaper renewal quote, they still saved around £64 by switching. So that proves how drivers can still save money when switching at renewal, whether prices are higher or lower than before. 

And although one size doesn’t fit all, there are also some tips drivers can try to keep costs down when it comes to renewal.

  • Use a price comparison site – If you’ve had a higher renewal quote, the best thing you can do is compare prices. That way you can ensure you’re getting the best deal to suit your needs and not paying more than you need to. And it’s likely that you can make a saving. 
  • Pay for your car insurance annually – If you can afford it, paying for your insurance in one go rather than monthly is one way to get cheaper car insurance. That’s because insurance companies often charge interest for spreading the cost of your cover over the year.
  • Increase your voluntary excess – Increasing your voluntary excess can help you get cheaper car insurance. But you need to make sure you can afford to pay it, if you need to claim.
  • Be accurate with your mileage – Generally, the more miles you drive, the more likely you are to have an accident and make a claim. This means the higher your mileage, the more you pay for your car insurance. So, driving fewer miles can be a great way to save money on your car insurance policy. But don’t assume that a low mileage always means low prices. If you barely drive at all, your insurance company could see that as a risk as well.
  • Enhance your car security – The harder it is to steal your car, the less of a risk it is. This usually means cheaper car insurance. There are several ways to improve your car security including:
    • Installing a Thatcham-approved car alarm or immobiliser, if it doesn’t already have one
    • Adding secondary levels of security like a steering lock.
    • Parking overnight in a secure, well-lit car park, or at home in a garage or driveway, if possible. 

For more advice on how to reduce costs, visit Confused.com’s guide on how to get cheaper car insurance.

Louise Thomas, motor expert at Confused.com car insurance comments, “For another consecutive quarter, we’ve seen some of the highest inflation rates when it comes to car insurance. With prices up on average £148 (19%) in just 3 months, and £338 (58%) in 12 months, drivers are likely to be paying more than ever. So those who haven’t yet been affected should be wary of how pricing may affect them at their next renewal. 

“But there are deals around and drivers can still save money, even if they’ve noticed their renewal has gone up. And in a time of financial uncertainty, this can be really helpful if you need to watch your money more closely than before. So if you’re due to renew, consider ways in which you can keep costs down. Whether it’s reducing your mileage or improving your car security, these can certainly help. But remember to always be truthful to your insurer, otherwise you risk invalidating your policy. 

“Our aim is to keep helping customers save money, especially in the current climate. That’s why switching and saving has never been more crucial, and we guarantee savings can be made. We’re so certain that we offer a guarantee to beat your renewal, or pay you the difference, plus £20(4). In this scenario, you not only get the best price, but you also get more cash. So there’s nothing to lose and lots to be gained.”

97% of car insurance products charging at least one extra fee

  • Millions could be paying more than they think for their car insurance
  • Customers paying extra to pay by direct debit and for set up fees, adjustment fees, cancellation fees and even renewal fees
  • NFU Mutual, which does not charge any extra fees, analysed data from Defaqto and found only 9 of 321 products – 3% – don’t charge any extra fees

Data from 321 insurance products shows that millions of people in the UK could be paying extra fees for their car insurance.

NFU Mutual, which does not charge any extra fees, analysed data from Defaqto and found that only 9 of 321 products – just 3% – do not charge any extra fees to customers.

Data table

Number of products – 321

Number of products charging a fee of some kind – 312 (97%)

ChargeNumber of products chargingPercentage of products chargingHighest feeAverage fee
Direct debit30695%n/an/a
Set-up fee14645%£350£58
Adjustment fee23974%£175£39
Cancellation fee28990%£400£57
Cooling-off cancellation fee16551%£400£42
Renewal fee13341%£100£47
Telematics disconnect and removal fee14 (out of 62 products)23%£100£68
Telematics documentation fee2 (out of 62 products)3%£60£60
Telematics missed appointment fee14 (out of 62 products)23%£60£51

The most common fees charged are direct debit fees, with 95% of products charging customers more to spread payments throughout the year, and cancellation fees, which are present in 90% of products.

The average cancellation fee is £57, with the highest charge a massive £400, which includes a broker fee and a charge for installing the related telematics device.

Adjustment fees are also charged in over three quarters of car insurance products, reducing the ability of consumers to make changes to their insurance without incurring costs. The highest adjustment fee was £175, which includes a broker fee and a charge for installing a new telematics device, with the average fee coming in at £39.

Well over 40% of products charged set-up and renewal fees, effectively penalising customers for setting up insurance. From products which charge the fees, the average set-up cost is £58 and the average renewal fee is £47.

Many insurance providers – 51% of products analysed – also charge customers for cancelling during the 14-day cooling-off period. This cooling-off period is a legal requirement during which a customer can cancel their policy for any reason. However, over half of insurance products charge customers to do this, at an average of £41 and reaching £400 at the higher end, with this covering cancellation, a broker fee and the cost of installing the related telematics device.

With so many car insurance products charging for common things, with the average fees representing not-insignificant amounts, customers could find themselves on the hook for substantial costs on top of their insurance premiums.

Wendy Yeomans, car insurance expert at NFU Mutual, said: “With the cost of living crisis hitting all our pockets, it’s more important than ever to keep on top of our budgets.

“Many households have cancelled media subscriptions or altered their buying habits to keep spending under control, but many will not be aware they are paying the equivalent of this in extra fees for their car insurance.

“Extra fees like this, which many consumers aren’t aware of, make budgeting more difficult and effectively mean the prices many pay for their car insurance creep up beyond what they expected.

“That is why, at NFU Mutual, we are proud to say we don’t charge any extra fees at all, nor do we penalise customers for paying in the way that suits them best – whether this is a monthly direct debit, lump sum or by cheque.”

More animals killed on M9 than any other road in Scotland

Almost 6,000 roadkills have been reported across England, Scotland and Wales since 2022

  • New data reveals how England accounted for 68% of all reported roadkill incidents.
  • The animals most likely to be hit by drivers were deer, badgers and foxes. Domestic animals like cats and dogs were also high on the list, accounting for 591 reports.
  • Over 1 in 3 (36%) UK drivers say they’ve hit an animal while driving in the past. But only 1 in 7 (15%) have reported it.
  • And hitting an animal could cost more than you might think. On average, roadkill is costing motorists £291 for damages to their vehicle.
  • Louise Thomas, motor expert at Confused.com car insurance explains what drivers should do if they hit an animal when behind the wheel.

More animals were killed on the M5 motorway than any other road in the UK last year, new data reveals.

Since 2022, there were 5,976 roadkill reports across England, Scotland and Wales. But the M5, which stretches 162m miles from West Bromwich to Exeter, accounted for 345 (6%) on its own. This makes it the most notorious road for roadkill incidents by vehicles across all 3 countries.

The data was obtained by Confused.com through a Freedom of Information request to Highways England, Transport Scotland and Transport Wales. The request asked each authority to state the number of dead animals found on roads between January 2022 and June 2023.

In England, the total number of animals reported dead to Highways England was 4,122. This makes up 68% of all roadkill reports in comparison to Scotland and Wales.

In Scotland, there were 1,521 reports of dead animals, while Wales accounted for 333.

But although England may seem the most notorious, its drivers in Scotland that could be most likely to hit an animal when driving.

That’s as Scotland has around 2.5 million registered vehicles(2), so around 1 animal is hit every 1,600 cars. In Wales, this is 1 animal in every 4,800 cars. And with around 28 million cars in England, 1 animal is hit in every 6,800 cars.

When looking at the particular roads that had the most reports, those topping the list were all found in England. In particular, the M1 and M6 had 282 and 273 reports, respectively.

In Scotland, the M9 was the worst for roadkill with reports showing 162 animals were found dead on this road last year.

But in Wales, figures were much lower. The worst road in Wales was the A55, most famously known as the North Wales Expressway, which had 105 reports.

When looking at the types of animals that are most common to be killed on roads, deer topped the list. Since 2022, there have been 1,924 reports of deer being killed. This was most common in England, with 1,084 reports.

In Scotland, 820 were reported and in Wales, just 20.

Badgers were second most commonly reported, with 846 reports in total, followed by foxes with 846 reports. Domestic animals were also among some of the most killed animals. That’s as 382 cats were reported dead last year and 209 dogs. This accounts for almost 10% of the overall figures.

The totals for domestic animals may be surprising for some, as they may expect to see higher roadkill numbers in residential areas. But the data collected from the Highways agencies primarily look after motorways and other large roads. This could be a reason why some reported animals are bigger than others.

And further research gathered by Confused.com backs this theory. The latest data suggests that there could be many other animals that actually top the list instead. In a recent survey of 2,000 drivers, 1 in 3 (36%) admit to previously hitting an animal when driving.

And when asked which animal they hit, the most common answers were:

  • Birds (35%)
  • Pheasants (23%)
  • Rabbits (21%)
  • Cats (15%)
  • Dogs (12%)

The difference in findings could be surprising, but this could be down to the legalities around reporting roadkill.

The UK law states that drivers have a legal obligation to call the police if they hit the following when driving:

  • Dogs
  • Horses
  • Cattle
  • Pigs
  • Goats
  • Sheep
  • Donkeys and mules

For animals like badgers, foxes and otters, they should be reported to the council rather than the police. But for other animals, such as cats and birds, these don’t need to be legally reported.

This could be why data reports for these animals are lower than expected. Although no matter the animal, it’s still recommended to report any that are hit when on the road. This is because they could cause obstruction and danger to other drivers.

But rules around reporting roadkill seems to be a confusing matter for drivers. That’s as almost 9 in 10 (87%) drivers admitted to not reporting an animal after they’d hit it with their car.

When asked why, more than half (52%) said they either thought or knew that they didn’t have to report it. But almost 1 in 5 (17%) said they either didn’t know how to report it, or they weren’t aware that they had to report that type of animal. A further quarter (26%) said they weren’t sure what to do if they hit an animal. So it’s clear that there’s some confusion among motorists around the best action to take.

Although the M5 motorway was the most common road for roadkill based on reports, it seems country roads are actually the most notorious for collisions.

That’s as almost 7 in 10 (68%) drivers said they’d come into contact with an animal on a country road or residential area (26%). But these types of roads are also where animals such as birds, pheasants and domesticated pets are most likely found.

And although country and residential roads could be most common for roadkill accidents, they could also be seen as less of an obstruction than motorways. So this could be the reason why roadkills are less likely reported on these types of roads.

But one thing that all roadkill incidents have in common is that the end result could be pricey. That’s as 1 in 5 drivers said their vehicle has been damaged after hitting an animal. And this left them out of pocket by £291, on average.

Hitting an animal when driving isn’t pleasant. And while it might feel like a sensible idea to swerve when danger is in sight, it’s not always possible. And 2 in 5 (44%) admitted that they wouldn’t swerve for an animal if it put other road users at risk. But that’s up for debate, as around 3 in 10 (29%) said drivers should try to avoid hitting an animal at all costs.

So it’s clear that there could be some confusion on what to do if you hit an animal while driving. But no matter if they’re a legal requirement or not, it’s always a good idea to report it to the appropriate authority anyway. This means the animal can either be treated or removed from the road correctly, and roads are kept clear for other road users.

Louise Thomas, motor insurance expert at Confused.com car insurance comments: “It isn’t nice for any drivers to hit an animal when on the road. It can be a shocking experience for yourself, your passengers and other road users. But sometimes contact can’t always be avoided.

“Whether you’re obliged to legally report it or not, you should always inform the police or your local council. That’s because it could cause an obstruction for other drivers. That way, the road can be cleared and the animal can be disposed of correctly. Unless absolutely necessary, you should avoid moving the animal yourself as this could risk your own safety.

“If you’ve hit an animal and your vehicle is damaged, it’s always worth getting a quote and having the damage assessed. In some instances, you might feel it’s worth making a claim on your car insurance.

“But for smaller claims, sometimes it’s also worth seeing if you can cover the costs yourself, rather than going through your insurer. Making a claim of any size could impact your premiums in future, with claims a common reason for increased cost.

“If you do hit an animal when driving, our guide on common motoring myths  explains what to do.”

Car insurance prices across Scotland reach an all-time high

A £190 (43%) annual increase means drivers in Scotland are now paying £624, on average, for their car insurance

  • Prices have increased across the country, but drivers in Central Scotland are likely to be paying some of the most expensive prices. The average cost in this region is now £691, following an annual increase of £214 (45%). 
  • Despite the Scottish Highlands and Islands being one of the cheapest regions, drivers in Shetland are seeing their prices increase by almost half. That’s as a 49% (£212) annual increase means prices are now £641, on average.
  • But drivers in Glasgow could be facing the most expensive prices overall. A £234 (45%) annual increase means the average price of car insurance is now £757.
  • The rapid growth in prices is reflected across other parts of the UK too. According to the latest data, record-breaking figures mean car insurance is one of the highest household bills. 
  • But drivers are still seeing savings – £63, on average. Louise Thomas, motor expert at Confused.com car insurance shares advice around how driver’s can try to keep costs down at renewal. 

The price of car insurance in Scotland has reached record-breaking levels, according to new data. 

Drivers are now paying around £624 for their car insurance, an increase of £190 (43%) compared to this time last year. That’s according to the latest (Q2 2023) 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 comprehensive policies. According to the data, prices over the last 3 months have also soared too. That’s as the average price has increased by £103 (20%) alone since April this year. 

Increases across all regions of Scotland mean that prices are the highest on record since the Confused.com price index began in 2006. Central Scotland is the most expensive, with prices now £691, on average. That’s an increase of £214 (45%) compared to this time 12 months ago.

In the East and North East of Scotland, prices are around £570, following a £171 (43%) rise, on average. Meanwhile, in the Scottish Highlands and Islands, the cost of car insurance is £560, on average.

This follows an annual increase of £166 (42%). And the least expensive region of Scotland is the Scottish Borders. Prices grew by £146 (40%), on average, but drivers were likely to still pay less than others overall. That’s as the average price of car insurance was £512. 

Despite being one of the cheapest regions, some drivers in the Highlands and Islands may have had a shock when renewing their car insurance. In Shetland, data shows how prices have increased by almost half.

A 49% increase means that drivers could be paying £212 more, on average, compared to this time last year. That puts the average price at £641. And drivers in Paisley are seeing similar changes. Car insurance prices have increased by £184 (42%) in 12 months, meaning the average price is now £625.

For drivers in Glasgow, they could expect to be paying the highest prices overall. The latest figures show that a 45% (£234) annual increase now puts average prices at £757. The cheapest prices seem to be for drivers in Kirkwall. Despite a 33% (£115) annual increase, prices are around £461. That’s almost half in comparison to the most expensive. 

Here’s a full look at the current prices across each region:

*prices are the highest on record

Central Scotland:
AreaAverage priceAnnual increase (£)Annual increase (%)
Edinburgh£626*£19445%
Glasgow£757*£23445%
Kilmarnock£613*£19547%
Motherwell£699*£20943%
Borders:
AreaAverage priceAnnual increase (£)Annual increase (%)
Dumfries£510*£13938%
Galashiels£514£15443%
Highlands and Islands:
AreaAverage priceAnnual increase (£)Annual increase (%)
Falkirk£573*£17243%
Hebrides£464£11131%
Inverness£519*£15543%
Kirkwall£461*£11533%
Paisley£625*£18442%
Perth£524*£16546%
Shetland£641*£21249%
East and North East:
AreaAverage priceAnnual increase (£)Annual increase (%)
Aberdeen£571*£17444%
Dundee£587*£17743%
Kirkcaldy£557*£16442%

And other drivers across the UK are seeing similar pricing trends when it comes to their car insurance. According to the data, the UK average now stands at £776. This is an annual increase of £222 (40%) and the highest price ever recorded on the Confused.com price index. 

These steep increases mean that drivers across the UK are potentially paying more than ever before. In fact, research by Confused.com showed that the cost of car insurance is almost as high as household electricity and council tax costs. And as a result, makes it the third highest household bill.

That’s according to a survey of 2,000 UK drivers(1), which found that the average council tax bill is now £984 per year, and £964 for energy. And that’s in addition to other expensive essentials, such as food and home entertainment.

That’s as research shows the average UK driver is spending:

  • £1,022 on food shopping
  • £690 on home entertainment services such as broadband and TV subscriptions.

Are all drivers seeing price increases?

Although some UK drivers saw some savings, most are feeling the effects of these price hikes. While this may look bleak, especially during a financially turbulent time, research also shows that there are savings to be made.

According to the additional research, only 9% of UK drivers had a cheaper renewal price last quarter (April – June). This proves that myths surrounding the regulations implemented by the Financial Conduct Authority in January 2021 aren’t true.

Following the changes, many drivers believed they wouldn‘t get a more expensive renewal price. But as the research proves, this isn’t the case. In fact, almost 2 in 3 (59%) saw their price increase, by £52, on average. This is despite almost a third (31%) having no driving convictions, and a further third (32%) having at least 1 year’s no-claims bonus on their policy.

However, many people trusted that they could find a better price, with almost half (46%) going on to switch providers. Of these, almost 2 in 3 (64%) used a price comparison site and saved £63 on their original price, on average.

It’s a similar picture for those who saw a cheaper price, which averaged at just £34 less than the previous year. Two in 5 (40%) went on to buy with another provider, with 1 in 2 (50%) using a price comparison site and also saved £63, on average.

It seems buying a new car insurance policy right now may sound unaffordable. But figures prove that drivers can still save money compared to the renewal price their current insurer is offering.

Why are prices increasing?

It’s clear from the data that prices are increasing for all drivers, whether they choose to renew or buy a new policy. But why are prices rising so significantly?

One of the biggest expenses for insurers is claims. During the pandemic, fewer cars were on the road. As a result, the industry saw a reasonable drop in prices to reflect the reduction in claims being made. But now, research suggests normal driving habits have resumed. This could mean insurers are having to pay out for more claims than they were 2 years ago.

But the important fact here is that the cost of these claims has increased significantly for insurers. Like with many other businesses, this is arguably down to the shift in inflation rates reported over the past 18 months.

And this, as a result, has driven up the cost of repairs and maintenance, which in the event of a claim, is covered by the insurer. This is especially true for newer cars, and many used cars that are in high demand. In fact, the Association for British Insurers (ABI) reported a 33% uplift in the cost of vehicle repairs last quarter(2).

We’re also seeing that used cars are holding their value more in the current climate. This means that payouts for write-offs or total losses are costing insurers more to cover. Similarly, new cars as well as electric vehicles are much higher in value than before due to more expensive features and upgrades coming as standard. This means paying out to replace a new car is costing insurers more.

How can drivers save money?

With the cost of living crisis continuing to hit Brits in the pocket, it’s clear car insurance is quickly becoming another hefty expense for drivers. It’s no surprise, then, that 2 in 5 (40%) motorists are calling on insurers to do more to make the cost of car insurance more affordable.

In fact, 1 in 4 (25%) claim they’re having to drive less due to the rising costs. And 1 in 5 (20%) are finding the overall cost of driving too difficult to manage. With the average car insurance price now £776, the overall cost of motoring has reached almost £2,000. That’s as research shows the average UK driver is spending an additional £720 on fuel per year, and £455 on other car maintenance costs.

However, according to Confused.com’s fuel price index, the average price of petrol dropped to 143.3p in June, from 174.5p in August last year. Similarly, the price of diesel is just 145.5p compared to an eye-watering 187.1p, which drivers were paying last November. This goes to show that there are still some areas of motoring where drivers are saving money.

But just because car insurance prices are increasing, doesn’t mean that motorists have to pay more than they need to for their policies.

Experts at Confused.com have identified some key ways for drivers to take a few pounds off their insurance price, without making any significant changes to the way they drive:

Be accurate with your mileage – Generally, the more miles you drive, the more likely you are to have an accident and make a claim. This means the higher your mileage, the more you pay for your car insurance. So, driving fewer miles can be a great way to save money on your car insurance policy. But don’t assume that a low mileage always means low prices. If you barely drive at all, your insurance company could see that as a risk as well.

Increase your voluntary excess – Increasing your voluntary excess can help you get cheaper car insurance, but you need to make sure you can afford to pay it, if you need to claim.

Pay for your car insurance annually – If you can afford it, paying for your insurance in one go rather than monthly is one way to get cheaper car insurance. That’s because insurance companies always charge interest for spreading the cost of your cover over the year.

Enhance your car security – The harder it is to steal your car, the less of a risk it is. This usually means cheaper car insurance. There are several ways to improve your car security including:

  • Installing a Thatcham-approved car alarm or immobiliser, if it doesn’t already have one
  • Adding secondary levels of security like a steering lock.
  • Parking overnight in a secure, well-lit car park.

For more advice on how to reduce costs, visit Confused.com’s guide on how to get cheaper car insurance.

Louise Thomas, motor expert at Confused.com car insurance comments, “Car insurance has quickly become one of the biggest expenses for drivers. If prices continue at this rate then there’s no doubt drivers could be priced off the road, as they battle with other rising costs too.

“But what we do know is that many drivers were able to save some money when it came to renewal. And shopping around was the key to this. Even if prices were cheaper for them, the price they saw online was still significantly cheaper.

“Although this isn’t all drivers can do to save money. We always advise drivers to take a look at the details of their policy and make sure they’re accurate before committing to a price. Updating your mileage, or considering additional security could easily bring your price down.

“In the current climate we want to help drivers do all they can to make their insurance more affordable. But we know the key to this will be shopping around and seeing what the best price out there is.

“It’s a competitive industry and we’re confident that switching will result in savings. This is why we offer a guarantee to beat your renewal, or pay you the difference, plus £20(4). In this scenario, you don’t pay more, and you gain more cash!”

Car insurance premiums rise by 40% across UK

The average cost of car insurance is now £776, after increasing by £119 (18%) in the past 3 months alone

●      Council tax and energy tops the list of the most expensive household bills, costing Brits £984 and £964 respectively, on average(1).

●      But drivers are still seeing savings, despite big price hikes, according to further research by Confused.com. Motorists who shopped around and switched in the past 3 months saved £63, on average, with only 9% reporting a cheaper renewal price year-on-year.

●      Why are prices rising? Confused.com experts suggest an increase in claims and consequently the cost of claims are rapidly rising. This would account for the unprecedented high increases in car insurance costs.

●      Confused.com issues advice to drivers on how to reduce car insurance costs as 2 in 5 (40%) Brits call on insurers to do more to keep prices lower. 

A staggering increase in the average cost of car insurance places it as the third most expensive household bill, new data has revealed. 

Motorists are now paying £776 for their car insurance, following a £119 (18%) increase in prices over the past 3 months, on average. That’s according to the latest (Q2 2023) 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 comprehensive policies. According to the data, prices are now £222, or 40%, more expensive than they were 12 months ago, on average. This makes it the biggest price increase on record. And to put into context how quickly prices have increased, the average premium is 49% more expensive than 2 years ago, in comparison. 

These steep increases mean that car insurance costs are close to the expensive rates people are paying for council tax and energy, according to further research. A survey of 2,000 UK drivers(1) found that the average council tax bill is £984 per year, and £964 for energy. And that’s in addition to other expensive essentials, such as food and home entertainment.

That’s as research shows the average UK driver is spending:

●       £1,022 on food shopping

●      £690 on home entertainment services such as broadband and TV subscriptions. 

Are all drivers seeing price increases? 

Although some drivers saw some savings, most drivers are feeling the effects of these price hikes.  While this may look bleak to drivers, especially during a financially turbulent time, research also shows that there are savings to be made. According to the additional research, only 9% of UK drivers had a cheaper renewal price last quarter (April – June).

This proves that myths surrounding the regulations implemented by the Financial Conduct Authority in January 2021 aren’t true. Following the changes, many drivers believed they wouldn‘t get a more expensive renewal price.

But as the research proves, this isn’t the case. In fact, almost 2 in 3 (59%) saw their price increase, by £52, on average. This is despite almost a third (31%) having no driving convictions, and a further third (32%) having at least 1 year’s no-claims bonus on their policy.

However, many people trusted that they could find a better price, with almost half (46%) going on to switch providers. Of these, almost 2 in 3 (64%) used a price comparison site and saved £63 on their original price, on average.

It’s a similar picture for those who saw a cheaper price, which averaged at just £34 less than the previous year. Two in 5 (40%) went on to buy with another provider, with 1 in 2 (50%) using a price comparison site and also saved £63, on average.

It seems buying a new car insurance policy right now may sound unaffordable. But figures prove that drivers can still save money compared to the renewal price their current insurer is offering. 

Why are prices increasing? 

It’s clear from the data that prices are increasing for all drivers, whether they choose to renew or buy a new policy. But why are prices rising so significantly? 

One of  the biggest expenses for insurers is claims. During the pandemic, fewer cars were on the road.  As a result, the industry saw a reasonable drop in prices to reflect the reduction in claims being made. But now, research suggests normal driving habits have resumed. This could mean insurers are having to pay out for more claims than they were 2 years ago. 

But the important fact here is that the cost of these claims has increased significantly for insurers. Like with many other businesses, this is arguably down to the shift in inflation rates reported over the past 18 months.

And this, as a result, has driven up the cost of repairs and maintenance, which in the event of a claim, is covered by the insurer. This is especially true for newer cars, and many used cars that are in high demand. In fact, the Association for British Insurers (ABI) reported a 33% uplift in the cost of vehicle repairs last quarter.

We’re also seeing that used cars are holding their value more in the current climate. This means that payouts for write-offs or total losses are costing insurers more to cover. Similarly, new cars as well as electric vehicles are much higher in value than before due to more expensive features and upgrades coming as standard. This means paying out to replace a new car is costing insurers more.

What does this mean for drivers?

While the average cost of car insurance in the UK has reached £776, there are some drivers that will be paying significantly more than this. The price paid  varies quite a bit, based on a drivers’ gender, location and age. 

For example, the average premium for male drivers is now £827. This has increased by £236 (40%) in the last year, and £125 (18%) in the past 3 months. In comparison, female drivers are now paying £690, following a £198 (40%) increase year-on-year, and £107 (18%) over the quarter. This brings the average gap between them to £137.

Similarly, a driver’s location has a huge bearing on their price, with some now paying over £1,000 for their car insurance. A £299 (42%) increase in prices in Outer London has put the average premium in the region at £1,003 – the first time it has reached over £1,000 since the index began. However, Inner London remains the most expensive region in the UK, with the average driver now paying out £1,257. 

As expected, prices have risen across all UK regions, but some are still paying a considerable amount less than others. For example, the average insurance cost in the South West is only £509, despite a £136 (36%) increase over the year.

And in most cases, prices are at their most expensive on record for each region, with the exception of Manchester and Merseyside. The average car insurance cost in the region is now £965, making it the most expensive region outside of London. However, this is still £48 (-5%) less than the highest price paid on record (Q4 2011).

A driver’s age also determines how much they  pay, with younger drivers bearing the brunt of the biggest car insurance costs. Steep increases means that drivers aged between 17 and 19 are paying out more than £2,000 for their policies, on average. In particular, 18-year-olds are paying the most, with the average premium now £2,404.

This is followed by 19-year-olds, who are paying £2,097, and 17-year-olds who are paying £2,088. At the other end of the scale, drivers around retirement age benefit from the cheapest prices. In fact, for 69-year-olds, the average premium is just £413, in comparison, with drivers aged 61 and over all paying in the £400 bracket.

Why are some drivers paying more than others?

While it may seem unjustified for some drivers to be paying out such hefty prices compared to others, this all comes down to the risk.

For example, male drivers typically have a higher risk profile than women, as they statistically drive more miles and more expensive cars. This puts them at an increased risk of a payout for insurers, as they have to account for the cost of covering a higher value car. 

Claims frequency is the biggest explanation for why drivers pay more, and when it comes to location, it’s typically the more populated areas that see the biggest prices. This is because these areas have more cars on the road, higher traffic levels and therefore a higher risk of accidents and claims.

And when it comes to age, younger drivers who are typically less experienced  pay more as they’re at a higher risk of making a claim. However, as they build up their driving experience and their no-claims, they should see their costs reduce over time.

How can drivers save money?

With the cost of living crisis continuing to hit Brits in the pocket, it’s clear car insurance is quickly becoming another hefty expense for drivers. 

It’s no surprise, then, that 2 in 5 (40%) motorists are calling on insurers to do more to make the cost of car insurance more affordable. In fact, 1 in 4 (25%) claim they’re having to drive less due to the rising costs.

And 1 in 5 (20%) are finding the overall cost of driving too difficult to manage. With the average car insurance price now £772, the overall cost of motoring has reached almost £2,000. That’s as research shows the average UK driver is spending an additional £720 on fuel per year, and £455 on other car maintenance costs.

However, according to Confused.com’s fuel price index, the average price of petrol dropped to 143.3p in June, from 174.5p in August last year. Similarly, the price of diesel is just 145.5p compared to an eye-watering 187.1p, which drivers were paying last November. This goes to show that there are still some areas of motoring where drivers are saving money.

But just because car insurance prices are increasing, doesn’t mean that motorists have to pay more than they need to for their policies.

Experts at Confused.com have identified some key ways for drivers to take a few pounds off their insurance price, without making any significant changes to the way they drive.

●      Be accurate with your mileage – Generally, the more miles you drive, the more likely you are to have an accident and make a claim. This means the higher your mileage, the more you pay for your car insurance. So, driving fewer miles can be a great way to save money on your car insurance policy. But don’t assume that a low mileage always means low prices. If you barely drive at all, your insurance company could see that as a risk as well.

●      Increase your voluntary excess – Increasing your voluntary excess can help you get cheaper car insurance, but you need to make sure you can afford to pay it, if you need to claim.

●      Pay for your car insurance annually – If you can afford it, paying for your insurance in one go rather than monthly is one way to get cheaper car insurance. That’s because insurance companies always charge interest for spreading the cost of your cover over the year.

●      Enhance your car security – The harder it is to steal your car, the less of a risk it is. This usually means cheaper car insurance. There are several ways to improve your car security including:

○      Installing a Thatcham-approved car alarm or immobiliser, if it doesn’t already have one

○      Adding secondary levels of security like a steering lock.

○      Parking overnight in a secure, well-lit car park.

For more advice on how to reduce costs, visit Confused.com’s guide on how to get cheaper car insurance.

Louise Thomas, motor expert at Confused.com car insurance comments: “Car insurance has quickly become one of the biggest expenses for drivers. If prices continue at this rate then there’s no doubt drivers could be priced off the road, as they battle with other rising costs too.

“But what we do know is that many drivers were able to save some money when it came to renewal. And shopping around was the key to this. Even if prices were cheaper for them, the price they saw online was still significantly cheaper.

“Although this isn’t all drivers can do to save money. We always advise drivers to take a look at the details of their policy and make sure they’re accurate before committing to a price. Updating your mileage, or considering additional security could easily bring your price down.

“In the current climate we want to help drivers do all they can to make their insurance more affordable. But we know the key to this will be shopping around and seeing what the best price out there is. It’s a competitive industry and we’re confident that switching will result in savings.

“This is why we offer a guarantee to beat your renewal, or pay you the difference, plus £20. In this scenario, you don’t pay more, and you gain more cash!”

Weekend storm warning for motorists

As weather forecasters say we could be in for a weekend of thunderstorms, motorists are being warned to check their insurance policies before venturing out into the elements.

The Met Office says a ‘hotter than normal’ weekend will bring outbreaks of torrential downpours and thunderstorms as temperatures cool after the heatwave.

Quotezone.co.uk, a leading car insurance comparison website, says any damage to cars caused by driving through flash floods might not be covered by insurance policies. It warns motorists to carefully check their policy exclusions, and even if routes are partially blocked, drivers should think twice before using waterlogged roads.

If drivers find themselves stuck in the car during a thunderstorm, official advice from the Met Office is to wind up the window and stay inside the vehicle – the metal frame of the car should act as a conductive Faraday cage, passing the current around the passengers and into the ground, should it be struck by lightning.* 

If motorists have an open or soft top vehicle, they are best to avoid driving if they know thunderstorms are coming.

Greg Wilson, Founder of Quotezone.co.uk, comments: “Motorists who have taken out third party only or third-party, fire and theft insurance wouldn’t be covered for any storm damage to their vehicles – only fully-comprehensive policyholders are likely to be protected in those cases.

“If a storm is predicted look at official flood warnings, avoid roads that are likely to flood and allow more time for your journey, note you may have to pull over and wait it out if the downpour starts to affect your visibility – not forgetting to put on the hazard lights.

“Unfortunately, if motorists do decide to drive through waterlogged roads, there’s a very real risk that they won’t be covered for any resulting water damage to the car – even fully-comprehensive drivers.”

Greg also warns motorists that have to go out, to make sure their cars are roadworthy before setting off, which includes checking tyre tread and windscreen wipers.

Quotezone.co.uk compares prices across all types of car insurance, including breakdown cover,  and niche products such as motor trade insurance – helping around 3 million users every year find better deals on their insurance.