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.”