Tag: confused.com

Car insurance prices tumble – but it pays to shop around

  • Scottish drivers are experiencing some of the biggest price drops since 2014, when the cost of insurance fell by 17% in the Scottish Borders
  • Drivers in Central Scotland are seeing biggest monetary savings year-on-year, as prices drop by £80 (15%), taking the average premium to £456.
  • The overall cost of insurance in Scotland has fallen by £72 (15%) year-on-year – with the average premium standing at £416.
  • Motorists in the UK can now expect to pay £538 for their car insurance, on average, after an £87 (14%) fall in prices year-on-year.
  • Shopping around proven to save drivers money, as further research of UK drivers finds almost half (45%) of those who received their renewal in the past quarter (Q1 2021) saw their price increase by £45, on average (1).

Drivers in Scotland are seeing some of the biggest drops in car insurance costs in almost seven years, new data reveals.

The average cost of car insurance in the Scottish Highlands and Islands dropped by £72 (16%), the highest percentage decrease in 12 months, meaning drivers in the region can now expect to pay £374, on average.

The last time car insurance prices in Scotland fell by this much was in 2014, when drivers in the Scottish Borders saw car insurance premiums drop by 17%, on average.

That’s according to the latest car insurance price index by Confused.com (Q1 2021), powered by Willis Towers Watson. Based on more than six million quotes per quarter, it’s the most comprehensive new business price index in the UK.

According to the data, motorists in all Scottish regions have seen a drop in their car insurance costs when shopping around.

In particular, Central Scotland saw big year-on-year price drops, as the average premium fell by £80 (15%), to £456.

Meanwhile, those in the East and North-East of Scotland have seen a saving of £60 (13%), making the average premium stand at £387. And drivers in the Scottish Borders can save up to £62 (15%), as the average cost for car insurance has dropped to £352.

Overall, the average cost of car insurance in Scotland dropped by £72 (15%) in 12 months, following a turbulent year which has sparked significant changes in driving habits. This means the average cost of car insurance in Scotland as a whole is now £416 on average.

Throughout this past year, prices have been steadily declining, as drivers spend less time on the road. As a result, prices in Scotland have decreased by £23 (6%) in the last three months alone (Q4 2020- Q1 2021), as insurers adapt their pricing to reflect the current level of risk on the roads.

Looking at the rest of the UK, similar savings are being seen, as motorists can now expect to pay £538 for their car insurance, after a price drop of £87 (14%) in the last 12 months, on average.

However, Louise O’Shea, CEO at Confused.com, explains that not all drivers will see these savings. While those shopping around and buying a new car insurance policy will have saved as much as £87, further research of UK drivers found that almost half (45%) of drivers who received their renewal in the past three months saw their price increase by £45, on average. This suggests they could be paying more by opting to renew with their current insurer.

In fact, of the drivers who saw their renewal price increase this past quarter, almost half chose to stay with their current insurer, despite their price being more expensive.

Of those who did stay with their insurer, one in 10 (11%) claim their insurer automatically renewed the policy on their behalf. And it’s this practice which makes it difficult for motorists to opt out of their policy and find a better deal.

This is something that is being investigated by the Financial Conduct Authority (FCA), which is looking into changes that will make it easier for customers to cancel their policy and benefit from the price savings being reported for new policies.

The FCA’s proposal won’t just make it easier to cancel auto-renewals, it is also set to prohibit insurers from calculating a price based on whether someone is a new customer or a renewing their policy.

However, this does not mean that renewal prices will stay the same or decrease, as they could still increase year-on-year. The FCA has been clear that shopping around will still give customers opportunities to save.

While all drivers in Scotland have been able to benefit from savings on their car insurance policy, some regions have seen greater savings than others.

In Central Scotland, it’s drivers in Glasgow that have experienced the greatest price cuts, with the average premium standing at £502 after an annual drop of £93 (16%). However, motorists in Kilmarnock are making the greatest quarterly savings, as prices drop by £29 (7%). Drivers in this region are also paying out the least for their insurance, as the average premium costs £396.

Motorists in Dumfries in the Scottish Borders are also seeing great savings, as the average premium has fallen to £351 after a price drop of £67 (16%) compared to 12 months ago. Prices have also gone down by £26 (7%) in the last three months, as drivers in the area benefit from the cheapest insurance prices in the region.

Meanwhile, drivers in Kirkcaldy in the East and North East can expect to save £65 (15%) year-on-year. They are also seeing the biggest quarterly savings, after prices have fallen by £28 (7%), taking the average premium to £377 – the lowest premium in the region.

In the Highlands and Islands, drivers in Paisley have seen the biggest annual savings, as prices fall by £86 (17%). Yet, it’s motorists in Shetland that have experienced the greatest quarterly savings, as the cost of insurance drops by £44 (11%), taking the average premium to £358. However, Kirkwall motorists are paying out the least for their insurance, with the average premium standing at £317.

The price drops are good news for both genders also. Females in the Scottish Borders are paying the least for their insurance, following a £59 (15%) drop in prices year-on year and a reduction of £19 (5%) in the last quarter – taking the average premium to £334.

Males in the Scottish Borders are also paying the least for their insurance, as prices dropped by £63 (15%) in the last 12 months and by £25 (6%) in the last three months, with the average premium ringing in at £363.

Meanwhile, both male and female motorists are making the greatest savings in the Scottish Highlands and Islands. Year-on-year, females have saved £67 (16%), and males have seen savings of £74 (16%), on average. The biggest quarterly savings can be found in this region also, as females can see price drops of £27 (7%), while males can see price cuts of £29 (7%), with average premiums standing at £348 and £390, respectively.

And, in a similar trend to the last quarter, all age groups across all Scottish regions are making savings on their car insurance both year-on-year and quarterly.

However, while it was younger drivers that were able to see big savings three months ago, now it’s older drivers who are faring the best.

Those aged over 71 can expect to make big savings, as males in the Highlands and Islands are seeing cuts of £77 (19%) year-on year, taking the average premium to £322, while females in the region can save £67 (18%), with average insurance premiums standing at £293.

In Central Scotland, females over the age of 71 are set to save £68 (17%) since 12 months ago, while males in the area can make savings of £74 (17%). Prices for this age group have also fallen in the East and North East, with males saving £65 (16%) and females saving £44 (13%), on average. Drivers aged over 71 who live in the Scottish Borders are seeing reductions of 17%, with females saving £60 and males £66 year-on-year.

But the youngest category of drivers is also benefitting from price cuts, as those aged 17-20 saved 11% in the Highlands and Islands, with prices dropping by £142 for males and £109 for females in the last 12 months.

In Central Scotland, females aged 17-20 can look to save £108 (9%), with males set to save £99 (7%). Equally, in the East and North East of Scotland, females in this age range can save up to £95 (10%), while male drivers are making savings of £142 (10%) in the last 12 months.

However, while the price of car insurance is decreasing, some motoring costs are in fact starting to creep up as the UK eases out of lockdown. In fact, Confused.com’s fuel price index suggests that petrol and diesel prices have been on the up since the end of last year.

According to the data, drivers can now expect to pay 124p for petrol, on average. This is 11p more than December 2020. Meanwhile, diesel prices have increased from 118p to 127p in the same period. With these costs increasing, drivers will no doubt be looking to make savings where they can, starting with their car insurance.

Louise O’Shea CEO at Confused.com, says: “It’s been just over a year since we went into lockdown for the first time and this triggered a lot of changes in how we’re using our cars. And this is a change that could be here to stay for the foreseeable future, so it only seems right that our car insurance costs are cheaper to reflect this.

“What we are seeing is the biggest drop in prices in Scotland in almost seven years. But it’s important to remember that these lower prices are only benefiting those who shop around. It’s clear from our research that automatically renewing could in fact cost you more money.

“Loyalty clearly doesn’t pay! But if the increase is small, or you are fortunate to see your renewal price drop, please don’t settle for this as there will be an insurer out there willing to offer a better price. At Confused.com we’re so certain of this that we’re offering to beat your renewal quote or give you the difference, plus £20”

Homeowners in Edinburgh over-spend by £13,000 on renovations

Confused.com reveal it will cost you an average of £35,364 to renovate your home

But 2 in 5 (39%) Brits overspent by nearly £8,000 when renovating their homes, on average

  • The kitchen takes the top spot as the most expensive room of the house to renovate, with people spending £5,219 doing up the heart of the home.  
  • New research by Confused.com found people in York have spent the most money renovating their homes, forking out more than £49,000, on average – nearly double the amount spent in Manchester (£27,217). 
  • Two in five (41%) Brits found that the hardest part of their home renovation was finding the right tradesman, while more than half (51%) found living in the home during the renovation to be the most challenging part.
  • Confused.com outlines which DIY projects should be declared, as further research(2) shows one in four (25%) UK homeowners don’t know which changes to their property they should let their insurer know about.

British homeowners have spent £34,000 renovating their homes on average, new research reveals. And for two in five (39%) people, this was an eye-watering £8,000 (30%) over budget.

That’s according to new research by Confused.com, which also reveals the areas of the home that are most commonly renovated, and the challenges people face when doing up their homes. You can view the research campaign here.

Nearly half of Brits (47%) have renovated their homes at some point. And nearly one in five (18%) UK adults have renovated their homes during lockdown. But when it comes to renovations, which areas of the home are being invested in and what are the obstacles homeowners face? 

What are the most expensive rooms to renovate and how much value do they add?

The kitchen is the most popular room to renovate, according to the research by Confused.com. In fact, most (96%) Brits have renovated their kitchen at some point, spending £5,219 on average.

Not only is it the most renovated room, but it is also the area of the house people have spent the most money doing up, followed by the conservatory and the bathroom. People who have renovated their conservatory (73%) spent £3,550, on average, while the 94% of Brits who have upgraded their bathroom spent £3,340, on average. 

Looking more specifically at the different renovation projects people have carried out, nearly three in five (60%) have upgraded their flooring, while more than half (53%) have installed new kitchen work tops or new windows. 

As the kitchen is the heart of every home, it’s no wonder it’s also the room most homeowners want to renovate, with more than one in four (27%) UK adults claiming it to be the room they’d most like to do up. This is followed by the bathroom (14%) and living room (11%).

Meanwhile, adding or extending a room tops the list as the most desired renovations, with nearly one in seven (13%) people claiming these as top of their wish list. One in eight (12%) would like to change things in the kitchen by installing new worktops, while for one in 10 (10%) Brits, converting a room, applying new flooring, or changing the windows is the most desired change they’d like to make to their house.

While the kitchen is top of the DIY wish list for some people, it seems it may not be the best room to renovate if you’re on a strict time frame, as the research suggests it’s one of the projects that takes the longest amount of time, along with the back garden and conservatory.

People who have renovated these areas of the home spent more than four months to complete the project. Meanwhile, the living room, master bedroom and bathroom offer the quickest transformations, all taking just over three months to complete, on average.

When it comes to the room that adds the most value, Residential Partner at Bramleys, Paul Keighley, comments on some renovations that have the greatest impact on the price of your home: “The number of bedrooms in a property has a big impact on its value so adding bedrooms will usually add to the sale price.

“Especially if it’s a loft or cellar conversion with an en-suite bathroom. For example, a three-storey detached house with three bedrooms could be worth around 20% less than one with four bedrooms.

“Many people think that merging two smaller bedrooms will increase the value of your property but generally, reducing the number of bedrooms in a property will have a detrimental effect on value and saleability.”

Adding value to their property was a key reason for one in five (20%) people who’ve taken on a renovation project. But changing the value of a home can have an impact on insurance. Any renovators who believe they’ve added value to their home through a DIY upgrade should let their insurer know about the changes. 

What UK cities are spending the most renovating their home?

Across the UK, at least three quarters (75%) of people have renovated 11 key rooms in the home – from the kitchen, bathroom and master bedroom, to the study and playroom. But are we spending more or less than others when it comes to transforming our homes? 

The top 10 cities spending the most on renovating their home on average include:

RankCityAverage people spend renovating their home
1York£49,056
2Southampton£47,512
3Cardiff£46,012
4Birmingham£45,125
5Liverpool£44,928
6Newcastle£42,702
7Leicester£38,857
8London£33,298
9Leeds£33,002
10Manchester£27,217

York tops the leaderboard as the city spending the most on home renovations, with people in the area forking out £49,056 to do up their home, on average.

In particular, people in York have spent the most on renovating their kitchen, spending £6,167, on average. This is more than double the amount spent by people in Edinburgh (£2,450), and over £1,500 more than people spend renovating their kitchen in Portsmouth (£3,500). 

Meanwhile, people in Norwich, Sheffield and Plymouth typically spend the least on home renovations at £17,547, £18,827 and £19,149 respectively, on average. 

Despite the capital being the UK’s most expensive city to live in the UK, London home renovators rank 8th in their total average spent at £33,298, which is more than £15,000 less than York. 

However, nearly half (46%) of respondents in London admitted to going over budget, with DIY projects costing a whopping £12,533 more than the original budget, on average. This is more than double the amount overspent by people in York (£5,601), where 45% also admitted to going over budget. 

What are the biggest challenges we face when renovating our homes?

It’s not always plain sailing when renovating a home, and there are factors that can occur that people may not have considered. These include everything from the weather to cancellations from traders, as well as not quite having enough money!

According to Confused.com’s research, the biggest challenge people faced was living at home while the property was being renovated (51%). Two in five (41%) also said the hardest part was trying to find the right tradesmen. 

But for nearly a third (30%), extra cost was one of the biggest challenges they faced when renovating their home. We know people typically go over budget when renovating their home, forking out an additional £7,765 on top of their initial budget, so it is crucial for homeowners to factor in any additional costs that may arise. And one important thing people may not consider is the insurance cover should anything go wrong. 

According to expert advice from Confused.com, insurance companies will typically pay out for DIY mishaps, providing it’s a job a person is qualified to do. Attempting to tackle the electrics or plumbing may result in a claim being declined.

There are also certain jobs you should make your insurer aware of, especially if it impacts the value of your home. Although, further research by Confused.com found one in four (25%) UK homeowners are confused about what they should be declaring to their insurer.

According to the guide, DIY in the home, basic DIY jobs including replacing carpets or putting up shelves don’t need to be declared. But anything structural, such as conversions, replacing windows or knocking down walls should all be made known to the insurer.

Jessica Willock, home insurance expert at Confused.com comments: “Renovating your home is an exciting project. It allows us to really make a home our own. And for many, it will increase the value of a property, which is great news in the long run. However, this is something you must tell your insurer about to make sure you have the right level of cover if you need to make a claim.

“Many people are confused about what they should or shouldn’t tell their insurer about, but our guide gives some explanation on what needs to be declared.

“Always check with your insurer before starting any major renovation work to see if you are covered and to what extent. This could avoid any unexpected costs that could arise and as a result will make the process less stressful.”

Cost of car insurance in Scotland falls by £65 in the steepest annual price drop in two years

Scottish drivers can now expect to pay £610 for their car insurance, as prices for new policies drop by 10% in 12 months, according to Confused.com’s car insurance price index 

  • Drivers in Central Scotland benefited from biggest savings, as car insurance drops by £72 (10%) in the region  last 12 months
  • But despite significant savings, Central Scotland is still most expensive region in Scotland, with average premium costing drivers £643
  • Motorists in the UK can now expect to pay £52 (6%) less for their car insurance when buying a new policy, on average – a welcome saving as the coronavirus crisis extends into 2021
  • However, further research by Confused.com found that two in five (42%) UK drivers who received their renewal in the past quarter saw their price increase by £49, on average

There’s good news for drivers in Scotland, as the average cost of car insurance has dropped by £65 over 12 months, in the steepest price drop seen in two years.

Scottish drivers can now expect to pay £610 for their car insurance, on average, as prices for new policies drop by 10% in the last 12 months. That’s according to the latest car insurance price index by Confused.com (Q4 2020), powered by Willis Towers Watson. Based on more than six million quotes per quarter, it’s the most comprehensive new business price index in the UK.

But motorists in some Scottish regions are seeing even greater savings. Drivers in Central Scotland have seen their car insurance premiums decrease by £72 (10%), on average, in the last 12 months. This brings the average car insurance cost in the region to £643, making it the most expensive of the four Scottish regions.

It’s a similar picture across the other Scottish regions, with all areas seeing steep decreases year-on-year. Motorists in East and North East Scotland have seen their car insurance prices fall by £66 (11%), taking the average premium in the region to £560, on average.

Meanwhile drivers in the Highlands and Islands can expect to make savings of £51 (8%) year-on-year, with the average car insurance cost standing at £601. Motorists in the Scottish Borders have seen prices drop by £46 (8%), with the average premium ringing in at £569.

These savings are reflected across the rest of the UK, with the overall cost of insurance falling by £52 (6%) on average – the biggest drop in two years. This brings the average price of car insurance to £763 – the cheapest price since early 2019. These decreases will no doubt be welcomed by drivers across the UK, as the coronavirus pandemic has forced a lot of financial uncertainty on many households.

However, further research by Confused.com suggests that motorists who choose to renew with the same insurer may not see the same savings. In a survey of 2,000 UK drivers, more than two fifths (42%) of those who were due to renew over the past quarter (Q4 2020) said their renewal price was more expensive than the previous year, with insurers adding an extra £49 to their price, on average. Worryingly, nearly a quarter (24%) chose to stay with the same insurer, despite their price being more expensive. But two in five (40%) shopped around and saved £60, on average.

Louise O’Shea, CEO at Confused.com, explains that this proves that it doesn’t pay to stay loyal. And new rules set out by the Financial Conduct Authority will make it even easier for consumers to cancel their existing policies and switch to a better deal(2).

Currently, customers who don’t actively seek out a new price will be automatically renewed on their existing policy, at the price which is set out by the insurer. And it’s clear from Confused.com’s research that many motorists are seeing their price increase year-on-year, meaning they’ll be paying out more money when there is likely to be a better price for them on the market. But the FCA’s proposal will not just make it easier to cancel auto-renewals, it is also set to prohibit insurers from calculating a price based on whether the customer is a new customer or a renewing customer. However, this does not mean that renewal prices will stay the same or decrease, they could still increase year-on-year.  The FCA have been clear that shopping around will still give customers opportunities to save.

As the country has lived in lockdown for the majority of the past 12 months, people are driving significantly less and the data suggests prices may have dropped to reflect this. According to further research by Confused.com, UK motorists expect to be driving 2,000 fewer miles this year, compared with last year, which can have a significant impact on the price they pay for their insurance.

Typically, having a lower mileage could mean drivers pay more for their insurance. For example, a driver with an annual mileage of between 3,000 and 4,000 miles per year would pay £126 more than if they were to drive between 8,000 and 9,000 miles.

This because a motorist who drivers fewer miles could be deemed to be less experienced and therefore a higher risk. However, in the current climate, two in three (61%) UK drivers claim they have been using their car less since being in lockdown, meaning the risk on roads has decreased overall.

While all drivers in Scotland have saved money on their car insurance in the last 12 months, some have benefitted from greater price decreases. In particular, drivers in Glasgow, Central Scotland, have seen car insurance prices fall by £104 (13%), on average, since the last quarter of 2019 with the average premium now costing £688. This is the biggest price drop in the region. Meanwhile, in the East and North East of Scotland, it’s motorists from Aberdeen that have seen the biggest savings. Drivers here can expect to save £79 (12%) year-on-year, paying out £567 for their car insurance, on average.

The price drops are boding well for both genders also. Male motorists in Central Scotland are making the biggest savings, as they can expect to save £74 (10%) on their car insurance compared to this time last year, taking the average premium to £667.

Similarly, male drivers in the East and North East of Scotland are also seeing a big different in prices, as they can expect to pay £70 (11%) less for their insurance compared with 12 months ago . The average premium for male motorists in the region stands at £581, on average. It’s a similar story in the Highlands and Islands and Scottish Borders, where male motorists can make savings of £53 (8%) and £48 (8%), respectively, on average.

Meanwhile, female drivers across the regions are also face similar decreases. Motorists in Central Scotland are able to save £70 (10%) on the car insurance premium since 12 months ago, with the average car insurance premium standing at £613  Female drivers in the East and North East of Scotland have seen car insurance premiums fall by £62 (11%) on average, since the same time last year, taking the average premium to £531. While, female motorists in the Highlands and Scottish borders are able to save £47 (8%) and £44 (7%) respectively, on average.

Perhaps somewhat surprisingly, even younger drivers are making savings in all four Scottish regions. Male drivers aged 17-20 are making the biggest savings, as prices have dropped by £125 (6%) in the East and North East Scotland, as well as in Central Scotland, on average. The average premiums cost £1,823 and £2,038, respectively, on average.

Female motorists aged 17-20 are also paying less for car insurance. Those in the East and North East are benefitting from the biggest savings, with car insurance prices having dropped by £90 (7%) since 12 months ago, taking the average premium to £1,288. While, in Central Scotland, female drivers in this age group are seeing savings of £88 (6%), with the average car insurance premium costing £1,480.

While the cost of car insurance is cheaper now for most drivers, it’s clear not everyone is off the hook, which proves the importance of shopping around to find the best deal.

Louise O’Shea, CEO at Confused.com comments: “We’re seeing some of the biggest car insurance savings across Scotland in a long time and it couldn’t come at a better time.

“It’s been nearly 12 months since we first went into lockdown and this put so many people in a difficult situation, so I have no doubt this news will be welcomed by so many. We’re at home and driving a lot less, it’s only right our car insurance prices should reflect that.

“That said, it’s important to remember that these savings are only being seen by those shopping around. We know from our research that insurers are still putting up renewal prices.

“Even if the increase is small, please don’t settle for this as there will be an insurer out there willing to offer a better price. At Confused.com we’re so certain of this that we’re offering to beat their renewal quote or give them the difference, plus £20(4).”

Shop around!

Savings to be made for Scottish drivers as insurance premiums drop

  • Scottish motorists can now expect to pay £616 for their car insurance, as prices for new policies drop by £26 (4%) in 12 months
  • More than three quarters (77%) of UK drivers who received their car insurance renewal in the past three months saw their price increase by £44, on average, according to research.
  • Expert report reveals how consumers are being affected by the loyalty penalty, which has cost consumers £1.2bn, according to investigations by the Financial Conduct Authority (FCA) and Competitions and Market Authority (CMA).
  • Drivers in the Central Scotland benefitted from the biggest savings, as car insurance prices dropped by £30 (4%) in the region in last 12 months.
  • Motorists in Central Scotland forking out most for car insurance, with the average premium costing £649
  • Drivers in Scotland are being urged to shop around as the price of buying a new car insurance policy has dropped by £26, on average – but insurers have been ramping up the cost of renewals, new research finds.

The average price of a new car insurance policy for drivers across Scotland is now £616, on average. That’s a decrease of 3% – or £20 – in the last three months, and of 4% (£26) in the last 12 months – meaning those who shopped around would’ve benefitted from this saving.

That’s according to the latest car insurance price index by Confused.com (Q3 2020), powered by Willis Towers Watson. Based on more than six million quotes per quarter, it’s the most comprehensive new business price index in the UK.

For some Scottish drivers, the savings are even greater than this. Motorists in Central Scotland in particular will have seen their car insurance price drop by £30 (4%) on average, when shopping around.

This brings the average cost in the region to £649, making it the most expensive of the four Scottish regions.

Similarly, prices in the Scottish Highlands and Islands fell by £29 (5%) year-on-year, meaning drivers in the region are now paying £594 for their car insurance, on average. It’s a similar picture for the other Scottish regions, with prices in the Scottish Borders decreasing by £27 (5%), and £14 (2%) in the East and North East.

Drivers in these regions can now expect to pay £554 and £583 for their car insurance, respectively, on average.

However, further research by Confused.com found that loyal customers aren’t seeing these savings, but instead are being penalised for their loyalty. In a Confused.com survey of 2,000 UK motorists(1), more than three quarters (77%) of those who received their car insurance renewal in the past three months (July – September 2020) saw their price increase by £44, on average.

The data comes as the Financial Conduct Authority (FCA) released its proposal to put a stop to renewal price hikes, or otherwise known as the ‘loyalty penalty’(2). According to the investigation, initiated by Citizens Advice and the Competitions and Markets Authority (CMA), this has cost consumers £1.2bn(2) when opting to automatically renew their insurance or service, as providers apply price increases after their initial term.

But now, the FCA has proposed measures which means insurers must offer renewing customers the same price as if they were a new customer. Louise O’Shea, CEO at Confused.com, warns that the new measures being proposed does not mean drivers will never get a more expensive price for their car insurance.

The proposed ruling, which is expected to come into force from July 2021, simply prohibits insurers from calculating a price based on whether the customer is a new customer or a renewal customer. But an insurer could still review the way prices are calculated at any time, which means prices for some customers could still increase year-on-year.

According to Ms O’Shea, the only way for customers to truly know if they’re getting the best price available to them is to shop around, as there’s likely to be an insurer offering a better deal. To further incentivise drivers to seek out a better deal, Confused.com is giving them the chance to save even more by guaranteeing to beat their car insurance renewal price or give them the difference plus £20(4).

Worryingly, nearly one in four (23%) UK drivers will always automatically renew with their current insurance or utility provider without checking if they can get a better price, according to Confused.com’s research.

In fact, nearly two in five (38%) know they could be getting a better deal elsewhere. And it’s these habits that have caused people to fall victim to the loyalty penalty and overpay for insurance products or other services for many years.

To explore the issue in more detail, Confused.com has created an expert report into consumer loyalty, which looks at how people are loyal to their providers, and how much this has potentially cost them.

While most drivers in Scotland have saved money on their car insurance this past quarter, some will seen some very significant savings. In particular, the cost of car insurance in the Hebrides fell by £80 (12%) since last year, while Shetland motorists are seeing the biggest quarterly price drops, worth £98 (15%), on average.

Drivers in these areas are now paying £582 and £560 for their car insurance, respectively, on average. In Central Scotland, drivers in Motherwell saw the biggest decrease in prices, and are now paying £52 (8%) less year-on-year, with the average premium costing £649. Kirkaldy in the East and North East of Scotland has seen annual decreases of £28 (5%) with the average price of car insurance in the area now £557.

Despite recent price drops, some drivers in Scotland are paying more for their car insurance than others – particularly male motorists. While quarterly savings are fairly matched between the genders, female drivers appear to be benefitting more year-on-year.

In particular, women in Central Scotland can save £33 (5%), while men in the region are only able to save £27 (4%), on average – taking the gap between the sexes to £62, with females paying £615 and males £677, on average.

It’s a similar story in the Highlands and Islands, where women can make savings of £30 (5%) since 12 months ago, paying £553, whereas men are only saving £28 (4%), paying £625 on average, bringing the gap to £72.

While in the East and North East, women are looking at savings of £17 (3%), whereas men can save £13 (2%) since the previous year – making the gap £61, with women paying £548 and men paying £609, on average.

Perhaps unsurprisingly, it’s younger drivers who are faced with the steepest car insurance costs, despite price drops in the region. In particular, male drivers aged 17-20 in all four regions are paying the most. In Central Scotland, motorists of this age can now expect to pay an eye-watering £2,022 for their car insurance, on average, despite premium costs dropping by £103 (5%) since three months ago. In comparison, younger female drivers in the same area now pay £1,475, on average.

These price drops are reflected across the rest of the UK, where motorists can now expect to pay £765 for their car insurance, as prices for new policies drop by £18 (2%) in 12 months, on average.

And shopping around in the next few months could result in great savings for drivers. At the end of 2019 (Q4), the average price of car insurance accelerated from £783 to £815 (£32, 4%) in the space of three months – one of the steepest quarterly price increases in more than two years.

This means drivers who bought their car insurance between October and December last year were paying some of the highest prices seen in two years. But, even if prices remained flat between now and the end of the year, buying a new policy in the next three months could result in a saving of £50, on average.

This is the second consecutive quarter where car insurance prices have fallen year-on-year, which coincides with the start of the UK lockdown in late-March.

Since then, circumstances have changed for millions of drivers across the UK, with nearly half (48%) claiming to have used their car less since the lockdown began.

And according to Confused.com data, the average annual mileage travelled has dropped by 4% between those who bought their car in the past three months, compared to the beginning of the year. This equates to millions fewer miles being driven per year. And it is this drop in traffic levels, and consequently risks of accidents, which is perhaps one reason for why the cost of car insurance has dropped over the last six months.

Lockdown also saw a huge surge in the number of people applying for a SORN, and new car sales plummeted, meaning insurers had to compete and adjust their pricing in order to attract the small number of drivers who were looking for insurance during this period.

However, while the UK is facing further lockdown restrictions, some sense of normality has resumed for some drivers, as people return to work and start to drive their car more often, and new car sales have also started to pick up gradually. It’s likely that car insurance costs will return to the upwards trend we saw before the coronavirus pandemic, but at what pace remains to be seen.

While the cost of car insurance is cheaper now for most drivers, it’s clear not everyone is off the hook, which proves the importance of shopping around to find the best deal.

Louise O’Shea, CEO at Confused.com, says: “The FCA announcing measures to stop insurers pricing renewing customers unfairly was bound to come as good news to drivers.

“For too long, people have been penalised for staying loyal, and that shouldn’t be the case. However, it’s so important to understand that this doesn’t mean they’re getting the best price available to them in the market.”

Car insurance: It pays to shop around

The cost of car insurance across Scotland has increased in the past 12 months, new data reveals, proving it’s more important than ever for drivers to shop around for the best deal. The average price of car insurance in the region has accelerated by £47 (8%) in the past year to now stand at £674.

That’s according to the latest Confused.com car insurance price index, powered by Willis Towers Watson. Based on more than six million quotes every quarter, it’s the most comprehensive car insurance price index in the UK.

While this may not be the news that drivers want to hear at this time, further research offers some relief, revealing the potential savings to be made from shopping around and avoiding automatic renewals.

The research, conducted by Confused.com, found that nearly half (46%) of UK motorists saw their car insurance price increase. Of those who saw their insurance price increase, more than a third (37%) opted to shop around using a price comparison website and switch to a better deal, saving £59, on average.

Some drivers saw even bigger savings, with one in six (17%) finding a policy that was more than £100 cheaper than their original price.

Following the report of these increases, Louise O’Shea, CEO at Confused.com, highlights the importance of shopping around.

It’s important, now more so than ever, for drivers to take a closer look at the price they’re paying for insurance and see if there’s a better deal out there for them. And while automatically renewing may seem like the stress-free thing to do in the short-term, it could end up costing drivers more in the long run.

Those taking this option could be signing up to an annual policy that is potentially hundreds of pounds more expensive than other options out there.

Therefore, it’s crucial for drivers to be taking the time to check their renewal document and compare with the previous year’s price.

And even if prices are similar, or have dropped slightly, then there is still the opportunity to save money. To further incentivise drivers to seek out a better deal, Confused.com is giving them the chance to save even more by guaranteeing to beat their car insurance renewal price, or give them the difference plus £20.

Over the past 12 months, the cost of car insurance has increased across Scotland. However, some drivers have seen more significant changes in the price than others. According to Confused.com’s price index, motorists in Central Scotland have been hit hardest by the increases, with prices in the region accelerating by £53 (8%) in 12 months.

This is one of the steepest increases across the UK, in terms of percentages, bringing the average premium just £1 below the most expensive on record for the region. Drivers in Central Scotland can now expect to pay £716 for their car insurance, on average.

Similarly, prices have increased in the Scottish Borders, with the average cost of car insurance rising by £46 (8%) year-on-year. This is also among the highest percentage increases for all UK regions. This means drivers in the region are now paying £625 for their car insurance.

Meanwhile other regions in Scotland saw increases, with prices in the East and North East and the Highlands and Islands climbing by £42 (7%) and £38 (6%) respectively. Drivers in the East and North East now pay £628, while the average price in the Highlands and Islands reached £640 this past quarter.

It’s a similar picture across the rest of UK, with all regions facing increases year-on-year. Overall, the average premium for UK drivers increased by £47 (6%) to now sit at £809. Although, in the past three months alone, prices dipped by £6 (1%), on average.

However, despite a slight drop in price, the cost of car insurance is still at one of the highest points in more than two years. But what can drivers do to bring their price down? It can be easy for drivers to feel overwhelmed by the news of increasing car insurance costs and thinking there isn’t anything they can do to help bring them down.

However, this isn’t the case. According to Confused.com’s expert guide, there are several things drivers can do to reduce the price they pay for car insurance.

For example, drivers can cut back on their cost by paying annually where they can. While paying monthly is more convenient, it’s like taking out a small loan, which will usually carry interest on top of the initial price. And according to Confused.com data this can cost as much as 16% more than the annual price.

Another way for drivers to cut back on their car insurance costs is to more accurately estimate their mileage. While some may believe that opting for a lower annual mileage could offer a lower price, data suggests this isn’t always the case.

According the car insurance price index data from Confsued.com, motorists who drive between 10,000 and 11,000 miles per year pay £678 for their car insurance, on average. Meanwhile, those who drive between 8,00 and 9,000 pay £748, in comparison.

And the price increases as the mileage gets smaller. For example, motorist who claim to drive between 4,000 and 5,000 miles per year pay £860, on average. This is because, in the eyes of insurers, drivers who spend less time on the road could be considered as less experienced, and therefore a higher risk.

However, the key to benefitting from these savings is to make sure the information is accurate and correct, or drivers risk voiding their policy.

Confused.com’s expert advice also suggests that adding extra security devices or opting for black box insurance could also result in saving some money on car insurance policies.

And choosing the right type of cover could be key to cutting costs. While many drivers might be drawn to take out third party, fire and theft cover, believing it may be the cheapest option, this may not always be the case. In fact, the average price of these policies tends to be pushed up. This is because higher risk drivers are more likely to opt for this type of cover.

Some drivers across Scotland may feel more inclined to find ways to cut their costs, as some bear the brunt of the recent price increases more so than others.

Annual increases in prices in Edinburgh, Dumfries, and Kirkcaldy means drivers in these areas are now paying the most expensive on record.

A steep £75 (13%) rise in prices for drivers in Dumfries brings the average price of car insurance in the area to £650. Meanwhile, prices Kirkcaldy climbed by £50 (9%) to £614 in Kirkcaldy, and £48 (8%) to £655 in Edinburgh, on average.

However, drivers in Glasgow face the most expensive car insurance costs, with prices now £784, following a £60 (8%) increase year-on-year. While motorists in the Hebrides saw the steepest annual increases, with prices accelerating by £85 (13%) in 12 months to now stand at £732, on average.

Meanwhile, female drivers across all Scottish regions saw the biggest changes to their car insurance costs. In particular, prices for female drivers in Central Scotland increased by £59 (9%) to £684, while men saw a £48 (7%) increase, in comparison. This means they’re now paying £741, on average, bringing the gap between the two to £57.

Younger, female drivers across all regions saw the biggest increases in particular, with prices for 17-20-year olds increasing as much as £101 (7%) year-on-year.

Female drivers of this age pay as much as £1,576 for their car insurance, while male drivers of the same age pay as much as £2,043 in comparison, on average. However, the only winners this quarter is 17-20-year-old male drivers in the Scottish Highlands and Islands, who are the only age group to see their price drop year-on-year.

Prices for these drivers are now -£2 (0%) cheaper than one year ago, standing at £1,980, on average.

Meanwhile, older drivers saw less dramatic increase in prices. Male motorists aged 71 and over in the Scottish Highlands and Islands saw their cost of car insurance increase just £15 (4%) over the past year to £370, on average.

However, the cheapest car insurance cost is rewarded to 66 to 70-year-old female drivers in the Scottish Highlands and Islands, who pay just £278, on average. Meanwhile, the cheapest price paid for men across Scotland is £312 for 66 to 70-year olds in East and North East Scotland.

But, while car insurance prices are on the up, drivers are offered some respite in other motoring costs. The cost of fuel across the UK has dropped significantly over the past four months.

According to Confused.com’s fuel price index, the average price of petrol this month is 116p per litre, compared to 127p in January. Similarly, diesel costs have dropped, with prices now 119p per litre, compared to 132p four months ago.

Louise O’Shea, CEO at Confused.com comments: “The fact that car insurance costs have increased in Scotland is not the news we need especially right now.  Year on year prices are up, but over the past few months they haven’t changed that much.  

“However, as a result of the lockdown the majority of people are using their cars less, it is therefore likely that we will see some change to prices in the coming months as insurers adjust to reflect this.  We are constantly monitoring the situation so that we can update our customers on any changes that happen.

“Automatically renewing with your insurer might seem like the easiest, stress-free option, but it could be costly.

“Even if your renewal price is cheaper, or the same, it’s likely there will be another insurer out there willing to offer a better price.  At Confused.com we’re so certain drivers will be able to find a better price than their current insurer that we’re offering to beat their renewal quote or give them the difference, plus £20.

“Please don’t pay more than you have to – take a few minutes to check your renewal letter and get a cheaper price because now, more than ever, it’s so important to shop around.”

Car insurance price rises spell bad news for drivers in Scotland

  • Motorists in Scotland can now expect to pay £643 for car insurance, on average –

There is bad news for drivers in Scotland as new data reveals the average cost of car insurance in the region has increased in the past 12 months. However, further research proves savvy drivers can combat these rises by shopping around.

New figures reveal the average price of car insurance in Scotland is now £643, following a £19 (3%) increase in 12 months. Continue reading Car insurance price rises spell bad news for drivers in Scotland

Bad news for Scottish drivers as car insurance prices accelerate

– The average price of car insurance in Scotland increased by £32 (5%) in 12 months with motorists now paying £646, on average –

  • Central Scotland sees the steepest increase, with car insurance costs climbing by £43 (7%) year-on-year.
  • Car insurance prices in the Scottish regions see the steepest increase in more than 12 months.
  • Scottish drivers are as little as £34 away from paying the most expensive car insurance prices on record for their region.
  • Further research finds two in five (43%) drivers saw their renewal price increase by £42, on average, as one in four (26%) are confused about why the cost of their car insurance is increasing.
  • Confused.com urges drivers to shop around as the average price of car insurance in the UK increased £37 (5%) year-on-year to £789.

 

It’s bad news for drivers in Scotland as the cost of car insurance in the region increased by more than £30 in 12 months. Continue reading Bad news for Scottish drivers as car insurance prices accelerate

Edinburgh is Scotland’s pothole capital

The true depth of Scotland’s pothole problem revealed 

  • Scroll to the murky depths of Scotland’s combined 154,0001 potholes reported in 2016 using interactive animation –
  • Confused.com’s scrolling animation reveals Scotland has the greatest pothole problem in the UK, drilling down OVER SIX KILOMETRES2 deep – that’s deeper than the Mediterranean Sea.
  • The animation’s regional view reveals Edinburgh has the deepest pothole problem in Scotland, with a total depth of OVER ONE KILOMETRE.
  • Scroll the total depth of the UK’s potholes combined, which is more than 40km deep – almost FOUR TIMES the depth of the Pacific Ocean.
  • In 2016, Scottish councils forked out almost £27,000,000 to repair potholes and more than £226,000 in compensation to those who’ve had their car damaged by craters in the road.

As the cold weather starts to set in, more and more potholes may start to appear on roads – a dreaded issue for both drivers and local councils. New research presented in a scrolling animation reveals just how deep Scotland’s pothole problem goes, and it is far worse than it appears on the surface.

A freedom of information request by Confused.com, the driver saving site, reveals a total of 154,310 potholes were reported to the region’s councils in 2016 – more than in any other UK region. Each local authority was asked for the minimum depth of a road defect to be considered a pothole, and this figure was aggregated against the total number to reveal a depth of over 6km (6,364m).

The animation allows users to visualise the true depth of the region’s potholes combined, scrolling passed iconic recorded depths such as the bottom of the English Channel (174m), Loch Ness (230m), and the Mediterranean Sea (5,270m). Users can then scroll all the way passed the Mariana Trench (11km) and the world’s deepest man-made hole (12.3km) into the Earth’s upper mantle (30km) before arriving at the combined depth of the UK’s 1,033,486 potholes. This is over 40 km deep and 3.7 times the depth of the deepest part of the Pacific Ocean.

The animation also allows users to drill down to specific local authority areas, and Edinburgh comes out on top for having the deepest pothole problem of the region.

Having this many potholes can be a very costly job for councils, as they fork out for repairs, as well as compensation to victims of damage caused by the craters in the road. In fact, a third (33%) of motorists in the UK say their car has been damaged by a pothole.

  • In 2016, the region’s councils spent a whopping £26,830,077 repairing potholes.
  • They also spent a combined sum of £226,238 to compensate drivers for damage to cars caused by potholes.

Top 5 local authority areas within Scotland with the biggest pothole problem, ranked by depth

Local authority areas No. of potholes reported Total depth £ spent on repairs £ spent on compensation
City of Edinburgh 35,329 1,413m n/a £69,385
Fife 29,188 1,168m £975,000 £519
Dumfries & Galloway 26,028 1,041m £1,820,892 £7,755
Glasgow City 13,128 525m £1,035,793 £16,945
Perth & Kinross 6,059 364m £746,157 £1,949

Amanda Stretton, motoring editor at Confused.com, said: “Scrolling to depths of more than 40km really puts into perspective just how deep the UK’s pothole problem really is. They are a major bugbear among drivers, not least because of the damage they do to our vehicles – around £3.1 million worth of damage, which has been paid out by almost half of the UK’s councils.

“If drivers experience a bump in the road, they should report it to their local council as soon as possible before the problem gets any worse. The cost of motoring alone is getting more and more expensive and damage repairs is a big contributor to this, as car parts increase in price as well.

“For advice on pothole damage, and other ways to save on motoring costs, drivers can find more information at Confused.com.”