car insurance – Page 2 – The NEN

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.

Cost of car insurance in Scotland grows 22% in just twelve months

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.”

UK’s worsening pothole problem a serious safety risk to cyclists

TODAY IS NATIONAL POTHOLE DAY – BUT THEN, EVERY DAY IS POTHOLE DAY!

Cyclists are being warned about the worsening condition of roads across the UK – with data showing 21% of cyclists are involved in an accident because of a pothole.*

Experts from leading bicycle insurance comparison site Quotezone.co.uk warn that this figure will only increase unless the government tackles the worsening condition of UK roads.

With a long winter of bad weather ahead, cyclists will run an increased risk of accident and injury by riding over potholes if UK roads are not properly maintained.

Damaged road surfaces represent a disproportionate risk to cyclists due to the lack of protection and the proximity of motor vehicles.

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Credit: Shutterstock

Spending on road maintenance has almost halved since the financial crisis just over a decade ago, and the recent cost-of-living crisis has pushed potholes further down the priority list for governments and local councils.

Even temporary pothole fixes – which involve filling the hole with a form of asphalt treatment – have decreased by almost half in some counties.

There are also claims from members of the public that councils are not properly inspecting potholes that have been reported online.

Several county councils have admitted that filling in potholes is no longer a priority as a result of the rising cost of living, with less funding for UK highways.

With the Met Office issuing weather warnings for the coming weeks, the number of potholes on UK roads is set to increase.

A combination of bad weather and lack of funding has left the UK network at crisis point with experts predicting the pothole problem may soon get out of hand.

Quotezone.co.uk are calling for councils and the government to urgently act on what is a UK-wide problem for the benefit of all road users but particularly cyclists as they are the most affected by damaged road surfaces.

Data shows that the worst pothole-affected area in the UK by far is Northumberland, with over 180,000 potholes reported over four years, followed by Cornwall and Kirklees in West Yorkshire.

Newcastle, Liverpool and Suffolk also have some of the worst potholed roads in the UK as well as Fife and Glasgow in Scotland, and Newry, Mourne & Down joined by Armagh City, Banbridge & Craigavon in Northern Ireland.

Lee Evans , bicycle insurance comparison expert at Quotezone.co.uk said: “Many of us who cycle in the UK have been shocked at the growing danger caused by roads strewn with potholes, and unfortunately the problem does not seem to be going away.

“21% of cyclists experiencing pothole-related accidents is a worrying number because any accident for a cyclist, can be very serious.

“With a winter of extreme weather predicted in the coming weeks and with spending on road maintenance on the decline, we could expect to see an increase in pothole-related cycling injuries. We’d encourage local authorities and the government to act now on fixing the UK’s pothole problem to help keep cyclists and all other road users safe.”

Quotezone.co.uk helps thousands of road users each year find savings on everyday household bills and essentials plus niche items such as cycling insurance, bicycle insurance, and road bike insurance

Government urged to take action on the UK’s worsening pothole problem

Drivers are being warned about the worsening condition of roads across the UK as recent data reveals that 90% of insurance claims come from potholes.

Experts from leading price comparison website Quotezone.co.uk are calling on the government and local councils to not let the pothole problem get even worse.

With a long winter of bad weather ahead motorists will run an increased risk of damaging vehicles by driving over potholes if UK roads are not properly maintained.

Spending on road maintenance has almost halved since the financial crisis just over a decade ago, and the recent cost-of-living crisis has further reduced potholes on the priority list.

Even temporary pothole fixtures – which involves filling the hole with a form of asphalt treatment – have also decreased by almost half in some counties.

There are also claims from members of the public that councils are not properly inspecting potholes that have been reported online.

Several county councils have admitted that filling in potholes is no longer a priority as a result of the rising cost of living, with less funding for UK highways.

And with an expected bad weather spell to last well into the New Year with rising levels of snow, ice and rain – it will no doubt make potholes even worse.

With a combination of bad weather and lack of funding, the UK is likely sitting on a disaster waiting to happen and the pothole problem may soon get out of hand.

With nine in 10 insurance claims coming from pothole incidents, Quotezone.co.uk are calling for councils and the government to urgently act on what is a UK-wide problem.

Data shows that the worst pothole affected area in the UK by far is Northumberland, with over 180,000 potholes reported over four years, followed by Cornwall and Kirklees in West Yorkshire.

Greg Wilson, Founder and CEO of Quotezone.co.uk said: “We all know how bad it can be to drive down roads which are full of potholes, and unfortunately the problem does not seem to be going away.

“With a massive 90% of insurance claims coming from pothole related incidents, most of us have had damage caused by a pothole, or know someone that has.

“We are expecting a winter of extreme weather and with spending on road maintenance on the decline, we could expect to see a significant increase in pothole related claims.

“This will make UK roads more dangerous for all road users, so we’d encourage local authorities and the government to act now ahead of the worsening weather and make a start on fixing the UK’s pothole problem.”

Quotezone.co.uk helps thousands of road users each year find savings on everyday household bills and essentials such as car insurance, van insurance and motorbike insurance

Differences in Car Insurance Premiums Mapped Out Across the UK

The amount drivers pay to insure their cars varies widely depending on where in the country they live, new data has revealed.

The average car insurance premiums paid by drivers, show massive regional differences according to newly released data from insurance comparison platform Quotezone.co.uk.

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Motorists in London are forking out considerably more than drivers in other parts of the UK, with average premiums in the capital nudging close to £800.

Some motorists may be tempted to move to the South West of England where average premiums are little more than half those in London at just over £400 a year.

Across the UK as a whole drivers paid an average of £548.52 for their annual motor insurance policy.

But regions comprising large rural spaces generally enjoy lower premiums than those that include large cities and urban areas where road accidents and car thefts are statistically more likely to occur.

Drivers in Scotland, Wales and Northern Ireland all paid less than the UK average at just £500 a year for their car insurance.

Conversely, motorists in regions such as the North West and West Midlands, which are largely made up of highly populated urban areas, both paid more than £630 a year on average.

As well as the likelihood of accidents and thefts, cities and densely populated urban areas generally have a younger population which is also a factor contributing to higher average car insurance premiums.

The average vehicle value can also be higher in big cities, pushing average premiums up even more, this is particularly true in the capital.

Quotezone.co.uk crunched the numbers on a sample of over 1,000,000 policies, naming London as the most expensive place in the UK to insure a vehicle, with drivers paying £781.01 on average.

The North West of England was the second most expensive place to insure a car with an average premium of £634.36.

The West Midlands region was revealed to be the third most expensive part of the UK for car insurance with an average premium of £630.42, just slightly less than that of the North West.

Drivers in Yorkshire, with its mix of urban and rural landscapes, paid an average premium of £592.27, while those in the North East paid £545.29.

The East Midlands region commanded insurance premiums considerably cheaper than those down the road in the West Midlands with an average premium in the East Midlands being just £538.93.

Perhaps surprisingly, the South East of England region offers motorists good value once those living in London have been factored out, with the average premiums here being just £498.25.

Welsh drivers paid only £493.30 on average while motorists in Northern Ireland enjoyed even better value, paying just £492.39.

Drivers in East Anglia also enjoyed cheaper premiums at just £489.62 on average, while north of the border motorists in Scotland paid even less, at £463.53 on average.

Finally, those car owners in the South West of England, including the rural counties of Devon and Cornwall, enjoyed the best value car insurance in the UK with average premiums of only £422.88.

Quotezone.co.uk founder Greg Wilson said: “When it comes to paying for car insurance there are huge variations depending on where in the country drivers live.

“Insurance companies are very specific and can vary the cost of a policy depending on which postcode the driver lives in but by zooming out a little we can see there are some interesting regional differences as a whole.

“Motorists in big cities tend to pay more and this is particularly true in London. With a greater population density, there are more cars on the road and the likelihood of a prang does increase.

“But there are also other factors at play including the local crime rate, the average age of drivers and the value of the vehicles they are insuring.

“So while the data may tempt some drivers to up sticks and move down to Cornwall, they should be warned that the cost of their premium won’t necessarily decline. There are several other factors insurance providers must consider and each premium is calculated on an individual basis for the person in question.

“It is essential for all motorists to accurately inform their insurance company of their home address as well as any other location where their vehicle is likely to spend more than 30 days. Failing to do so may cause their policy to be invalid if they were to make a claim.”

The data is available at Quotezone.co.uk and our comparison site can help keep insurance quotes competitive.

Cost of car insurance in Scotland increases by 18% in the last 12 months

Drivers currently paying £463 on average following a recent spike

Drivers in central Scotland have seen the biggest increase to their car insurance premium over the past 12 months. The current cost stands at £505, on average, following a £73 (17%) rise.
Drivers in the Scottish borders are currently paying the cheapest rates for their car insurance. Premiums are £391, on average, despite a 20% price increase in the past 12 months.
Although FCA changes to regulation have made pricing fairer to customers at renewal, further research highlights that this does not necessarily protect customers from price increases. More than 2 in 5 (41%) UK drivers who received a renewal quote in the past 3 months said that they saw an increase of £38, on average(1).
However, those who shopped around using a price comparison website were able to save £50 on their car insurance, on average.
With the current cost-of-living crisis affecting millions across the UK, Confused.com recently launched its money saving hub to support consumers and give advice on how to manage recent price hikes.
In light of the recent price increases, Louise O’Shea, CEO at Confused.com emphasises the importance of shopping around for the best deals and why drivers shouldn’t settle for auto-renewal.

That means motorists are seeing a £69 increase compared to this time last year. That’s according to the latest car insurance price index (Q3 2022) from Confused.com, powered by WTW. Based on 6 million quotes a quarter, it’s the most comprehensive car insurance price index in the UK.

However, some drivers in Scotland could be paying more than the national average, depending on the region in which they live. The latest data shows that drivers in central Scotland are currently paying the most for car insurance.

Their current premium is £505, following a £73 (17%) year-on-year increase. Despite facing an annual increase of £64 (20%), drivers living in the Scottish Borders pay the cheapest rates for their car insurance, with an average premium of £391.

Meanwhile, drivers in East and North East Scotland are paying £431, on average, for their car insurance. That’s as drivers faced a £69 (19%) increase in the past 12 months. And as for drivers in the Scottish Highlands and Islands, the current car insurance premium is £420, on average, following an increase of £61 (17%).

Region	Average Premium	YOY £	YOY %
Scottish Borders	£391	£64	20%
Central Scotland	£505	£73	17%
East & North East Scotland	£431	£69	19%
Scottish Highlands & Islands	£420	£61	17%

It’s a similar picture across the rest of the UK, where prices continue to rise. In fact, premiums have risen by £72 (14%) in the past 12 months alone.

The current UK premium stands at £586, on average, and is the highest annual increase in the past 5 years.

With the latest data revealing that premiums are on the rise, some drivers might think that they’re better off sticking with the same insurer when it comes to renewal. But further research conducted by Confused.com finds that some insurers don’t seem to be doing enough to protect their existing customers.

In a survey of 2,000 UK drivers, data reveals that more than 2 in 5 (41%) drivers who considered sticking with their current insurer received renewal quotes £38 more expensive than the previous year, on average⁽¹⁾. That’s despite the fact that more than a quarter (28%) of drivers who have renewed so far this year thought that their insurance quote would be cheaper this time around.

However, some motorists are taking action after receiving a more expensive renewal and are really seeing the benefits of switching. More than a quarter (27%) of drivers who chose to shop around using a price comparison site were able to save £50, on average. In fact, the Financial Conduct Authority (FCA) is actively advising consumers to shop around when it comes to buying insurance for this very reason.

Earlier this year, the FCA made important changes to stop ‘price walking’ and ensure all customers were treated fairly, but it seems some motorists remain complacent as a result. One in 5 (20%) drivers told Confused.com that they were less inclined to shop around because of these changes.

However, these new regulations don’t mean that better deals still can’t be found elsewhere and, as research shows, consumers are saving money by switching.

While the cost of car insurance premiums is on the up, there’s no ignoring the fact that the general cost of living is increasing, too. That’s why it’s more important than ever to shop around for the best deals. And as we head into the colder months, it’s clear that money will be tight for many.

With difficult months ahead, Confused.com has launched a money saving hub to help people understand where they can save money on bills to balance out price hikes. The hub focuses on a variety of insurance options, but also includes advice on how to be more fuel efficient and keep car costs down.

Its aim is to provide useful and digestible information that will help customers save money, without necessarily having to compromise and give up essentials.

Louise O’Shea, CEO at Confused.com, comments: “With costs currently rising all around us, I’m sure it comes as no surprise that the cost of car insurance is increasing, too.

“However, the pace at which it’s rising will be a real worry for many. The latest figures reveal a true example of how volatile the market currently is, which is why I need to stress just how important it is to shop around when it comes to renewing any insurance policy.

“As we head into winter, money is going to be tight. With concerns over the rising costs of energy, fuel and even food, millions of us will be looking for new ways to number-crunch and save money where we can. In recent months, the FCA have really amplified the importance of shopping around to help find some of the best deals out there during this time.

“Research shows that customer loyalty doesn’t always pay off, which is why it’s always encouraged to shop around and see what else is out there. If you switch insurers using Confused.com, there’s some fantastic rewards available that could help during a difficult time.

“A £20 voucher could pay towards a food shop in Lidl or even go towards an MOT or service in Halfords. And we even guarantee to beat your renewal⁽⁵⁾. If we can’t, we’ll give you £20, plus the difference. Either way, you’re better off just by using a price comparison service.

“I cannot emphasise enough just how important it is to take time, do your research and compare insurance prices. You might be missing out on fantastic deals and it will really help in the long run.”

Scottish drivers face growing car insurance premiums

The average cost in Scotland is now £435, following a £31 (8%) increase year-on-year, according to the Confused.com car insurance price index

According to the data, Central Scotland is the most expensive region, with motorists paying £477 for their car insurance, on average. This is an increase of £34 (8%) year-on-year.
Drivers in the Scottish Borders pay the cheapest price for car insurance, despite a £29 (9%) year-on-year increase. Drivers in this region can expect to pay £366, on average.
Further research shows that almost half (45%) of drivers who received a renewal quote last quarter saw a price increase of £41, on average. However, drivers who shopped around on a price comparison site saved £54, on average (1) .
Louise O’Shea, CEO at Confused.com urges drivers to shop around ahead of time and to consider opting for annual payments, which could save drivers as much as 10% on their car insurance(3)
How to save money on your car insurance: Confused. money on your car insurance: Confused.com expert tips aim to help drivers save more on their insurance as the cost of living rapidly increases.

Car insurance costs across the Scottish regions are at the highest in almost two years following the steepest increase in prices since before the COVID-19 pandemic (Q4 2020), new data reveals.

The average cost of car insurance in Scotland now stands at £435, on average, with drivers seeing an increase of £31 (8%) compared to this time last year. That’s according to the latest car insurance price index (Q2 2022) from Confused.com, powered by WTW. Based on six million quotes a quarter, it’s the most comprehensive car insurance price index in the UK.

However, some drivers could expect to pay more than the national average, depending on the region in which they live. The data shows that drivers in Central Scotland pay the highest prices for car insurance, with the cost now £477, following a £34 (8%) increase compared to this time last year. Despite an annual increase of £29 (9%), drivers living in the Scottish Borders pay the cheapest costs for their car insurance, with an average premium of £366.

Meanwhile, drivers in East and North East Scotland are now paying £399 for their car insurance, following a £27 (7%) increase year-on-year. And drivers in the Scottish Highland and Islands are paying a premium of £394, on average, following an increase of £30 (8%).

Region Average Premium YOY £ YOY %

Scottish Borders £ 366 £29 9%

Central Scotland £ 477 £34 8%

East & North East Scotland £ 399 £27 7%

Scottish Highlands & Islands £ 394 £30 8%

It’s a similar picture across the rest of the UK, where prices increased by £32 (6%) over the past 12 months to £554. This is the highest prices have been across the UK in almost 2 years.

The reports of steeper car insurance costs might come as bad news for Scottish motorists, which is why it’s never been so important to shop around for the best deals when it’s time to renew.

However, while prices are increasing for most drivers across the UK, further research by Confused.com shows that many loyal customers are still taking a bigger blow, having seen their renewal increase more than the price of a new policy, on average.

A survey of 2,000 UK drivers(1) found that almost half (45%) of those who received their renewal last quarter saw their price increase by £41, on average. This is despite 1 in 10 (10%) drivers who have renewed their car insurance since January 2022 believing that prices wouldn’t increase after Financial Conduct Authority (FCA)(2) changes earlier this year. However, while prices are increasing for new policies too, the data shows that drivers could still save money by shopping around and taking out a new policy.

In fact, those who shopped around after receiving a more expensive renewal price saved £54, on average, after using a price comparison website and switching insurers.

Louise O’Shea, CEO at Confused.com reminds drivers that the recent FCA changes do not always mean a cheaper or like-for-like renewal price, as any increase to the average UK car insurance costs will be reflected in renewal premiums. And it’s likely that prices will continue to increase as motorists spend more time on the road, meaning that likelihood of claims will increase too.

It’s evident from the latest data that increases have been seen across other regions too, with the UK average premium now £554 – that’s £32 (6%) more expensive than 12 months ago.

However, despite annual increases across all regions, some areas in Scotland have in fact benefitted from a decrease in costs over the last quarter. For instance, although there has been an annual increase of £59 (16%) in Shetland, the average cost for car insurance in the area has actually decreased by £19 (4%) since the last quarter. Drivers in Aberdeen have also seen the average premium cost decrease by £2, making their annual cost £397, on average.

But despite small wins for some, other areas continue to see increased car insurance costs. For drivers in Glasgow, the average cost for car insurance is £523. This is a £39 (8%) increase compared to this time last year and also currently makes Glasgow the most expensive area in the whole of Scotland.

While prices are on the increase, data shows that female drivers are still paying cheaper prices compared to males(4). For males aged 17-20 in Central Scotland, car insurance prices are the most expensive in comparison to all other Scottish regions.

These costs have increased by an eye-watering £110 (8%) in the last 12 months, on average. Female drivers in Central Scotland also saw a 6% increase year-on-year, but this equates to £59 in comparison. In the past 12 months, the total cost for drivers aged 17-20 in this region has increased to £1,479 for males and £1,140 for females.

With the cost of living crisis worsening and further household bill hikes expected later in the year, drivers need to be savvier than ever. And when it comes to their car insurance, drivers should be shopping around, as it’s one expense that could guarantee a saving.

An option for drivers to save money on their insurance is by choosing for annual payments. While monthly direct debits may be the most convenient option, paying upfront for an annual cost could save drivers an extra 10% when taking out a new policy(3).

With so much to consider when it comes to car insurance, it can be confusing for drivers to know which factors will produce the best savings. To help motorists understand where savings could be made, Confused.com has created 16 tips to get cheaper car insurance costs. And it could be as simple as making sure all of your details are correct when taking out insurance.

Louise O’Shea, CEO at Confused.com comments: “With millions stung by the current cost of living, it can be disheartening to see that car insurance prices are also on the rise. As the latest data shows, we’re seeing some of the highest spikes in prices since before the pandemic.

“With us all still adjusting to life after lockdown, it’s likely that this is due to the number of insurance claims being made increasing as we get back into some sort of routine. Unfortunately, this means that you might notice a price increase when renewing or shopping for your car insurance.

“While prices are increasing, we know that car insurance is one area where you can still save money, which will help to balance out price hikes in other areas. It’s clear from research that renewal prices are often more expensive, and it can be easy to accept a higher price if it doesn’t look too bad given the expectation that everything is increasing at the moment. But please don’t do this. You can pay less!

“The car insurance market is very competitive right now, which is the perfect time to be savvy and shop around for a better deal. Taking some time to research the best available options can really pay off. We know there’s an insurer out there who can offer you a better price, which is why we guarantee to beat your renewal(5). And if we can’t, we’ll give you the difference, plus £20. So, if anything, you will make money!”

Social media sites rife with scam car insurance ‘ghost brokers’, says Which?

Social media sites are rife with dodgy companies offering car insurance that is either non-existent or missing key details, resulting in tens of thousands of drivers being potentially left uninsured on the roads, Which? research has found.

‘Ghost broking’ is a scam that cost its average victim £1,950 last year. It involves ‘brokers’ forging insurance paperwork completely or more commonly selling victims a ‘real’ policy at a reduced price, by changing some of the victim’s details in the application, such as their address or claims record. It leaves those affected potentially liable for fraud and at risk of penalties for driving uninsured.

Ghost brokers mainly operate online, particularly on social media. In May, Which? searched on social media platforms for profiles and pages that showed signs of being run by scammers.

Which? analysed the first 50 pages returned from a search for ‘cheap car insurance’ on Facebook, Instagram and TikTok. Of the 47 profiles that matched Which?’s search on Instagram, more than half, 25, appeared to be offering quotes or cover to UK drivers, while showing no signs of being authorised by the Financial Conduct Authority (FCA).

In a separate search, Which? found one Instagram profile that boasted it could save customers ‘up to 50%’ on their premium – it also offered ‘NCB (no-claims bonus) Documents’ and ‘Speeding Ticket Removal’. It had 45,900 followers – more than the five biggest insurers combined – and claimed to have ‘over six years experience in [its] field’. It also had a sister profile with an additional 15,200 followers. Which? flagged these to Instagram, and both have since been taken down.

On Facebook, seven pages of the 50 profiles were dubious. On video-sharing site TikTok, two of the 50 profiles analysed were suspect.

Experts Which? spoke with in the police and insurance industry seem to agree that ghost brokers generally operate most prolifically on Facebook and Instagram.

According to the Insurance Fraud Bureau, last year insurers collectively reported more than 21,000 policies that could be connected to the scam.

Some victims will not report being scammed because they are too embarrassed. Others might be aware their quotes have been manipulated, but ghost brokers can be persuasive in downplaying the significance of this.

Some ghost brokers also put real effort into creating a positive word-of-mouth buzz, which helps them seem trustworthy.

Some 517 cases of ghost broking – with losses totalling £1 million – were reported to Action Fraud in 2021. However, this will only be people who make a report to Action Fraud and actually know that they have bought a fraudulent policy. The true numbers are likely to be much higher.

Many of these losses, unsurprisingly, were from young drivers, who face the steepest premiums. Ghost brokers also heavily target non-native English speakers.

People who have not even bought a policy can also be affected by the scam through having their address or other details used as part of forged insurance paperwork.

To test how social media platforms are vetting unregulated insurance middlemen, Which? set up six accounts of its own on Facebook, Instagram and TikTok, claiming to be car insurance brokers.

Which? promised cheap quotes and asked interested drivers to contact via a mobile phone number or directly message through the website.

The two profiles Which? set up on Facebook were taken down by the site within a few days, as was an Instagram profile linked to an email address containing the word ‘ghostbrokerscammer’. However, a second Instagram profile, connected to a less conspicuous email with a ‘normal’ name (e.g. ‘johnsmith’), stayed up for 35 days until Which? took it down.

The two TikTok profiles, one linked to a ‘ghostbrokerscammer’ email, also stayed up for the same period.

Which? believes social media companies should have stronger processes in place to protect consumers from fraudulent pages offering financial services.

When the Online Safety Bill comes into force, platforms should be required to prevent this kind of activity. To ensure this is the case, Which? is calling on the government to amend the Bill to ensure its definition of fraud does not allow some scammers to slip through the net and to guarantee that Ofcom has appropriate powers to adequately enforce the Bill when it becomes law.

Meanwhile, consumers should be wary of insurance brokers selling their services on social media and carry out other basic background checks to ensure they are not buying a fraudulent or misleading insurance policy – and are dealing with a company that is actually authorised by the FCA.

Jenny Ross, Which? Money Editor, said: “Ghost broking is a really nasty kind of fraud, where scammers operate by stealth and typically take advantage of those who feel locked out of, or bewildered by, the car insurance market.

“Social media sites must do much more to crack down on car insurance scammers that are infiltrating their sites and harming consumers, and should address these problems now, ahead of the Online Safety Bill becoming law.

“The Online Safety Bill should require platforms to tackle this type of fraudulent content. The government must ensure this happens by amending the Bill so that its definition of fraud does not allow some scammers to slip through the net and guaranteeing Ofcom is ready to enforce these new laws when they come into force.”

‘Can I borrow the car?’

Don’t give your festive guests the gift of penalty points this Christmas

With children heading back from university for Christmas or friends and family coming to stay, many hosts will be confronted with the same question: ‘Can I borrow your car?’

Such requests are likely to be even more common this year, with many guests trying to avoid public transport or staying for longer periods to make up for the time apart during the pandemic.

However, according to leading insurance comparison site Quotezone.co.uk, obliging hosts should be aware that depending on the insurance in place, they could face losing their no claims bonus – or even getting in trouble with the law.

According to research from the Office for National Statistics, almost two-thirds of UK students have moved out of their family home to study at university – meaning when they do flock home for the festive season they are unlikely to have a permanent insurance policy in place on the family car.

Greg Wilson, Founder of Quotezone.co.uk, comments: “Whether or not to let children or guests drive your vehicle is a seasonal dilemma for many hosts, and the pressure will be even greater this year. However vehicle owners need to be aware of the insurance options before handing over the keys.

“Perhaps the most obvious solution is to add the other person to your own insurance policy as a named driver, particularly if it’s your own children that are asking to borrow the car. However, if they are involved in an accident, you could lose your no claims bonus.

“An alternative is for them to take out a separate policy in their own name. Temporary policies can be arranged for anything from a few hours to a month, and could give you greater peace of mind, especially if you have a large no-claims bonus. It may also work out cheaper too because you aren’t insuring them for the full year.

“Either way, insurers will want details of your guests including their driving licence and details of any convictions.

“Whichever option you choose, the most important thing is to ensure that your guest does have insurance in place. There is still a common misconception that anyone with comprehensive insurance on their own vehicle is automatically insured to drive another car on a third-party basis. However, this isn’t always the case so it’s important to check whether their policy specifically includes ‘driving other cars’ (DOC) cover.

“Driving without insurance is a serious offence punishable by a minimum £300 fine and six penalty points. In more serious cases, the driver may be given an unlimited fine or disqualification and the police may have the right to seize and destroy the vehicle, even if it belongs to someone else. The vehicle owner could also be committing an offence and may be given points and a fine.”

Where children or other guests do stay for longer periods and hosts add them to their own policy, they should be wary of how much time they spend behind the wheel The main policyholder (known as the proposer) should still do the bulk of the driving, because if someone else is driving more often it could be regarded as ‘fronting’, a type of insurance fraud that could result in a large fine and a criminal record.

Quotezone.co.uk helps around 3 million users every year, with over 110 UK car insurance providers including niche products such as temporary insurance, named driver insurance and third party insurance.