Brits are being warned failure to properly protect their caravans against theft or damage this summer could have huge financial consequences.
Motoring experts at Quotezone.co.uk warn thousands of holidaymakers could be seriously out of pocket if an uninsured caravan is stolen or damaged while parked.
With many motorists set to take to the roads with touring caravans in tow this summer, experts are warning of the consequences for having incorrect caravan insurance.
Many car insurance policies will provide holidaymakers with basic third-party liability cover for towing a touring caravan.
However, with 4,000 caravans stolen each year, specific insurance to cover the costs of theft is the best way to ensure Britons aren’t left out of pocket.*
Car insurance will not cover a caravan while it is parked or if it sustains damage. This is why experts encourage Britons to take out dedicated caravan insurance.
Caravan insurance protects those who are victim to theft of personal belongings or fire damage to their caravan.
Leaving a caravan vulnerable to tampering, accidental damage or theft could also leave holidaymakers paying hefty sums to fix or repurchase their caravan.
Brits are encouraged to make sure they are keeping their caravan as secure as possible, with over 17% of those surveyed choosing to park their caravan in a communal caravan park.
Before setting off with a caravan in tow this summer, holidaymakers must alert their insurer to let them know of plans and make sure the vehicle is fully covered.
Insurance providers may wish to adjust premiums of those towing caravans. Failure to update providers may lead to refusal to pay out on any claims made.
It is also important for motorists to review their breakdown cover, as some policies will only cover car breakdowns. This could leave motorists having to leave their caravan behind in the case of a car emergency.
Greg Wilson, Founder and CEO of Quotezone.co.uk said: “With caravan thefts on the rise and so many due to travel this summer, it has never been a more important time to make sure you are fully insured against any accidents or emergencies.
“Although sorting insurance isn’t the most exciting summer prep. It could help you from forking out on repairs or covering recovery for your touring caravan in the case of a breakdown on the way to your holiday destination.
“Many car insurance policies will provide holidaymakers with basic third-party liability cover for towing a touring caravan, but this doesn’t cover everything.
“We encourage anyone towing a caravan to take out specific insurance for their home away from home. This way, you can get off on your holiday with no worries over cover for your vehicle or caravan.
“But, we also wanted to provide some safety tips to ensure your caravan is as protected as possible this summer.
Here are Quotezone’s top tips to keep caravans safe from theft or damage:
Secure storage
Many Brits are able to park their caravans at their private residence on a driveway with a barrier, but those without this option must choose carefully before securing their touring caravan for extended periods of time. If parking at a communal caravan park, make sure to remove all valuables or keep them out of sight for anyone who may be able to peer in through the windows. Make sure to also choose a reputable park with good access control.
Wheel locks
There are wheel locks designed for caravans to make it impossible for anyone to remove without your say-so. Make sure to buy one for caravans specifically in order to get the most effective outcome.
Install a caravan alarm
There are lots of caravan alarms on the market for those looking to take extra measures to keep their holiday home secure. A great deterrent for thieves is to make it clear you have an alarm installed by putting stickers in your windows. If parked in a caravan park, the loud noise caused by the alarm will not only deter thieves from your caravan but will also let other owners know there are potential thieves in the park grounds.
Storing at home
If storing your caravan at home, try to make sure you can park it to the side or back of your house if possible. Those who aren’t able to do this should park their car behind their caravan on a driveway or use a cover to disguise the van’s worth and attractiveness for potential thefts.
Cat owners are cutting back on pet essentials such as vet care, vaccinations, and insurance as a result of the cost of living crisis, according to new research from Cats Protection.
The leading feline welfare charity is seeing a rise in people giving up their cats for financial reasons and is warning there could be an animal welfare crisis as a direct result of the cost of living.
Cats Protection has launched an online hub to support owners in need with a raft of information including how to look after your cat on a budget and how to access help with costs.
One in three* cat owners surveyed said they feel “greatly impacted” by the cost of living crisis, while nearly one in five (18%) said they were spending less on vet services, including missing essential vaccinations or not microchipping their pet.
Meanwhile, nearly one in three (31%) of cat owners said they are concerned about how they would pay emergency vet bills if their cat became sick or injured, with nearly one in five (18%) concerned about paying for routine vet treatment. The charity says this represents tens of thousands of cats whose welfare could now be at risk.
A quarter of cat owners (25%) said they are spending less on pet insurance because of the cost of living and 17% are concerned about paying for insurance in the future.
Alison Richards, Head of Clinical Services at Cats Protection said: “We know the cost of living is having a huge impact on people across the country, with many cat owners making difficult choices to make ends meet. Cutting back on insurance or vet treatment can ultimately lead to higher costs if a cat becomes injured, gravely unwell, or even pregnant.
“We’ve launched a new information hub with lots of tips and ideas for looking after your cat on a budget, with everything from how to make free cat toys to how to access help with costs such as neutering. We want to provide access to information and resources that can help every owner look after their cat.”
Cat owners also reported cutting back on spending, with more than half spending less on eating out or takeaways, days out, clothes, drinking and holidays. The survey also showed that 60% of owners feel their cat is a source of comfort to them during a difficult time.
Adoption centres are also seeing a rise in people giving up their cats for financial reasons.
Nicola Murray, deputy manager at Cats Protection’s Harrow Homing Centre, said: “The cost of living is having a greater impact on animal welfare than Covid. We’ve got desperate people turning up on our doorstep every week and our waiting lists for people wishing to give their cat up are several weeks long.
“People need more information and support for managing their cats during this time as no one should have to give up a much loved pet during a time of crisis.”
*Survey of 3,011 cat owners in the UK, conducted by Basis on behalf of Cats Protection. Fieldwork completed in December 2022.
Motorists have been warned not to leave Christmas presents on display in parked vehicles after almost a third admitted to being a victim of car crime.
Experts at Quotezone.co.uk have revealed that more than one in ten Brits leave their precious presents in the car during the festive season, presenting an ideal opportunity for heartless thieves to ruin Christmas.
New data from Quotezone.co.uk reveals that 11% of us admit to leaving gifts we have purchased for loved ones in our cars while we continue our Christmas shopping or enjoy a night out.
The car insurance comparison experts also asked 1,000 drivers if they had experienced a vehicle break-in, with almost one third, 31%, confirming they had.
Now they are warning car owners to be more careful this year and ensure presents are kept in the safety of the home, or at least well hidden from view in vehicles.
Better still, take presents straight home from the shops and get them wrapped and placed under the tree.
Greg Wilson, Founder of Quotezone.co.uk said: “It must be a terrible feeling to have carefully chosen or sentimental Christmas presents stolen from a car just before the big day.
“Our data shows that almost one third of drivers have experienced a car break in, yet 11% of us still leave presents in a parked car. Christmas is a time of goodwill but sadly for some thieves it’s a time of opportunity.
“It’s also an incredibly busy time of year, drivers need to remember to be careful and always keep presents hidden out of sight under the boot cover or in the glove box, ideally parked next to a streetlight on a busy street. If the car is left unlocked or the stolen items are in full view, it may invalidate an insurance claim.
“Fully comprehensive car insurance usually includes cover for some possessions damaged or stolen from a car but there’s usually a cap on this amount. If drivers know they’ll be travelling to see family this Christmas and have a large sack of expensive gifts in the car, it would be worth informing their insurer to double check they’re covered and potentially increase the price cap temporarily. Also don’t forget to keep all receipts, they may be needed if they have to make a claim.”
To further prevent car break ins, drivers should park in a well-lit, populated area, ensure that all windows are rolled up, and consider installing a steering-wheel lock, car tracker and immobiliser – if the car doesn’t have one as standard.
Car security is really important any time of the year, but especially during the festive period with expensive and sentimental presents in danger of being stolen and ruining Christmas.
If cars are broken into, drivers should take photos, identify the damage and inform the police – obtaining a crime reference number, also inform the car insurance company as soon as possible.
The unusual weather this summer is causing issues for drivers that could result in fines or penalty points – adding to the mounting cost of living expenses.
This week alone has seen warnings from medical experts about ‘thunder fever’ – a rare weather phenomenon that makes hay fever (and asthma) much worse with a combination of thunderstorms and elevated pollen counts across the country. It happens when moisture and lightning brought by the storm, shatter pollen normally too large to enter the lungs into tiny pieces.
Whilst drivers need to be careful that sneezing, a runny nose and watery eyes brought on by hay fever doesn’t impair their driving ability, there is a serious risk for those suffering with the pollen. The government legislation that bans driving while under the influence does not distinguish between illicit drugs, prescription medication and over-the-counter medications.
This means any type of drug that affects a motorist’s driving abilities could potentially result in a drug-driving conviction, even if it’s something as simple as hay fever medication that causes drowsiness. One in four people in the UK has hay fever, which equates to approximately 16 million people.
Other distractions that could be classed as careless driving include ‘rubber necking’ at the storm itself or failure to see through the windscreen properly, if caught in heavy rain.
Quotezone.co.uk, a leading car insurance comparison website, says 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.
However, any damage to cars caused by driving through flash floods that accompany thunder storms might not be covered by insurance policies. Quotezone.co.uk warns motorists to carefully check their policy exclusions, and even if routes are partially blocked, drivers should think twice before using waterlogged roads.
Greg Wilson, Founder of Quotezone.co.uk, comments: “The weather has been extreme this summer and driving in the heat alone has been challenging but there are things drivers need to know to avoid risking penalty points or fines and keep themselves safe on the roads.
“If a storm is predicted look at official flood warnings, avoid roads that are likely to flood and allow more travel time, note drivers may have to pull over and wait it out if the downpour starts to affect your visibility – drivers can be fined if they can’t see clearly out of all windows.
“Hay fever symptoms can come on unexpectedly and some types of medication do cause drowsiness, or carry a ‘do not operate heavy machinery’ warning. If a driver fails to obey this warning and gets behind the wheel, they could risk a hefty fine of up to £5,000, points on their licence and endanger themselves and other road users.”
It’s always sensible to check the weather before setting off on long journeys and err on the side of caution, Met Office pollen count forecasts available here.
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, with over 400 insurance brands across 60 different products.
Churches are being urged to take steps to prevent arson after a church in Sheffield was seriously damaged in an attack.
Claims data from specialist insurer Ecclesiastical shows over 150 churches across the UK have suffered arson attacks over the past five years, causing millions of pounds worth of damage to historic buildings.
In the latest incident, Pitsmoor Christ Church was the victim of a fire on 4 July, which South Yorkshire Police are investigating as arson.
While the number of attacks dropped during the pandemic, Ecclesiastical is warning churches to take urgent action over the summer months when arson attacks more frequently occur.
Nationwide threat
The data revealed that almost every county in the country has seen churches targeted by arsonists, with London, Lancashire, Yorkshire, Essex and Kent the worst affected.
Unlike theft of metal where organised gangs tend to carry out raids over a large geographical area, arson is often as a result of the actions of an individual and with no clear trends. This makes proactive action to protect church buildings even more important
Communities devastated
Specialist insurer Ecclesiastical was formed over 135 years ago to protect Anglican churches and church buildings against the risk of fire. The Gloucester-based company’s risk management experts produce fire prevention advice, including arson prevention guidance, specifically designed to help protect churches.
While thankfully a rare occurrence, the impact of arson on churches and the wider community can be substantial as recent significant fires have shown.
In 2017 the Grade II listed Church of the Ascension in Lower Broughton, Greater Manchester was devastated by an arson attack leaving the community distraught.. The restoration project, led by Ecclesiastical, is due for completion later this year.
More recently, All Saints Church in Mackworth, Derbyshire was gutted by fire in December 2020. A teenager has since pleaded guilty to setting fire to the church and schools in the area and is awaiting sentencing. A lengthy restoration project is underway to restore the Grade I listed building and return it to the local community.
Churches urged to take steps
Following the latest fire, Ecclesiastical’s risk management team has urged churches to take additional steps to protect themselves.
Jo Whyman, risk management director at Ecclesiastical Insurance, said: “Our data shows that arson seems to be on the increase again and the impact of these attacks can be truly devastating.
“It’s horrible to see churches damaged as a result of a fire – particularly at the hands of criminals. These buildings are part of the fabric of our society, at the heart of our communities, and have been for centuries. Senseless acts by individuals not only destroy bricks and mortar, but often priceless artefacts that have historical significance to our nation.”
Extinguishing the risks
To help manage the risk of an arson attack and help to protect the country’s cherished historic churches, Ecclesiastical’s risk experts have issued advice to churches.
These include:
Keep your church secure: At night lock your church doors, windows, and any external gates. Installing security lights and keeping the exterior well lit will deter intruders. Also, consider installing fire alarms, intruder alarms and CCTV that provides continual monitoring to an alarm-receiving centre.
Report suspicious activity and make your church look busy: Use the building as much as possible for church and community activities.
Practice good housekeeping: Keep internal doors shut and locked when not in use, this can slow the spread of fire through a building and prevents access to obscure areas. Safely store items that could start fires inside the church, for example portable heaters and matches, and move bins away from the outside of the building. Take particular care when building or maintenance projects are being undertaken, ensuring building materials and waste are stored safely, securely and well away from the building.
Carry out regular external inspections of your church buildings and grounds: Make regular checks to the building and report damage to the police and your insurers as soon as possible. Cut back vegetation on a regular basis.
Repair damage to the church immediately: A damaged building is at risk of further attacks, including arson. Ensure any damage is repaired and graffiti removed quickly.
Check your fire extinguishers: Check you have enough fire extinguishers including some that are water (hydro-spray) or carbon dioxide types.
Be prepared for fire: Keep up-to-date fire risk assessments for your premises. Consider ways in which deliberate fires could be started and how you can prevent or reduce the risk.
Mr Whyman continued: “Churches are legally required to carry out a fire risk assessment and in doing so they’ll be able to understand the risk of fire – including the risk of an arson attack.
“It is really important that steps are taken to prevent fires and by following our guidance you can help to reduce the risk of arson at your property. The good news is, many of the recommended safeguards don’t require capital investment but simple precautionary steps which could make all the difference.
“Our Risk Management team are on hand to assist our customers and bespoke guidance and support is available through our Risk Advice Line as well as general guidance available on our website.”
A full list of Ecclesiastical’s arson prevention advice can be found at the company’s website, www.ecclesiastical.com.
The provider paid more than £3.5 billion in claims over the past five years
Covid-19 claims paid out last year amounted to over £73 million, double the amount paid in 2020
Nearly 17,000 customers and their families benefitted from an average pay out of £47,243
Project Smile launches to support children going through a difficult diagnosis
Legal & General paid out a record 46 personal protection claims every day in the UK during 2021, totalling £797.9 million – an increase of £33.9 million from 2020 – and benefitting 16,890 customers and their families.
As the UK’s number one individual Life Insurance provider Legal & General has paid out more than £3.5 billion in claims over the past five years across its Life, Critical Illness Cover (CIC), Terminal Illness Cover (TIC) and Income Protection (IP).
Overall, the provider paid 97% of individual protection claims with an average pay out of £47,243.
Of the small percentage not paid, almost nine in 10 were because of ‘deliberate or reckless misrepresentation’. Over 30% of misrepresentations were due to lifestyle factors that should clearly have been in the customers knowledge, with the majority of these being linked to alcohol.
Legal & General continues to work closely with its partners and distributors to help minimise misrepresentation and do more to explain how insurance claims work so it can support even more customers in 2022.
As in 2020, the pandemic impacted the 2021 claims data; with almost one in seven life claims Covid-19 related. Legal & General paid out 1,579 Covid-19 life claims at an average of £46,769 per claim, making up a combined total of almost £74 million – over £34.6 million more than last year.
The difference in claims for men versus women when it came to Covid-19 related deaths is stark. Only 35% of Life Insurance claims came from women, compared with 65% from men. Legal & General’s figures continue to reflect those from the Office for National Statistics that show men are more likely to pass away from Covid-19 than women2. In contrast, 60% of Legal & General’s overall Life Insurance claims are for men, again indicating an increase when looking at Covid-19 claims specifically.
Income protection continues to play an important role
All IP products include Legal & General’s Rehabilitation Support Service. It gives customers access to an in-house team of healthcare professionals who offer wide-ranging physical and mental health support at no extra cost.
Project Smile
This year saw the launch of Project Smile, an initiative to support children going through a difficult diagnosis.
For every claim relating to a child’s illness paid, the provider sends a gift to the child to help bring a smile to their face. Gifts are chosen according to the preferences of the child and can include anything from a voucher to a Peppa Pig toy.
David Banks, Director of Claims and Underwriting said:“Paying claims is core to what we do. As we continue to come back from Covid-19, we remain focused on giving our customers and their loved ones financial support when they need it most. But more has to be done to tackle misrepresentation.
“At Legal & General we’re working closely with partners and distributors to help make the underwriting process as transparent and streamlined as possible. We hope that increasing knowledge around the lifestyle and general health information required will minimise misrepresentation and help us support even more customers in their moment of need.
“We’re proud to have paid out more than £797million in claims last year, but it’s the personal impact behind the figures that’s most important. We know an injury or illness affects the whole family, none more so than when it happens to a child. That’s why we have launched Project Smile.
“Our assessors get to know the families throughout the course of a claim – we wanted to go beyond just dealing with the paperwork and show that we are thinking of them through what is likely to be the most challenging time of their lives.”
You may already be in planning mode for the Queen’s Platinum Jubilee, but have you considered insuring your street party?
Between the 2nd and 5th of June, it’s estimated that there will be 10 million Britons hosting street parties organised across the UK, according to Country Living.
It’s no surprise to see how huge an occasion this is! Not only is this a great celebration of the Queen’s 70-year reign, but it’s also a welcome opportunity to reconnect with our community after COVID. We could all do with some good news after all.
There are so many things to think about when it comes to party-planning, and no more so than when it involves an entire street or community.
A-Plan Insurance have revealed their top tips to throw a Jubilee Street Party:
Planning a Jubilee Street Party?
The official Big Jubilee Lunch is planned for Sunday 5th June. Here are some helpful pointers to help you decide on whether to plan a street party:
1. What type of Jubilee Party do you want to hold?
If you are planning a Street Party, you will need to contact your local council. You can do this here or simply give your Council a call if it isn’t listed on their website.
If you don’t need to close the road, you can run a ‘Street Meet’ – if you live in a cul de sac, councils are generally happy for this to go ahead without permission. Otherwise, use driveways, parking areas and front gardens – none of these will require council permission. Ensure you don’t obstruct pavements.
Another option is a ‘Neighbour’s Picnic’, which can be held in the local park, the only caveat is that you cannot have music or a barbecue, but it may work well for sandwiches and cake!
2. Get your community involved from the start
Get your neighbours involved – and make sure everyone meets to discuss the Big Day beforehand.
Ask everyone to bring a dish and drink, and don’t forget to include vegetarian/vegan type options.
Consider whether you will buy plastic cutlery, or reduce waste and encourage neighbours to bring their own cutlery.
Consider classic British recipes, such as Scotch Eggs, sausage rolls, Bakewell Tart and Victoria Sponge cake.
If you are using private land, you could consider a barbecue.
If you need crockery, consider buying some mismatched plates from a charity shop, they appear much more authentic, cause less waste and the charity will benefit from your purchase. You could even clean them up and return them for resale.
To keep decoration costs down, get the local children involved in creating bunting, paper waving flags on (paper) straws, and paper chains.
Consider setting up a Spotify playlist and sharing the link with your neighbour’s who can add their music to it as well. Add a few of the Queen’s favourites, such as ‘The White Cliffs of Dover’ by Vera Lynn, and ‘Leaning on a Lamp-post’ by George Formby.
And remind everyone to bring their favourite mug for a cup of tea!
3. Do I need Jubilee Street Party Insurance?
As a Platinum Jubilee Street Party is a one-off event, you won’t need a risk assessment or licence for the consumption of alcohol. That doesn’t mean that there is no risk.
We would encourage anyone organizing a Jubilee party to have street party insurance cover in place. The main risks are:
Burns from barbecues
Food and drink
Trips and falls
Damage to vehicles
Breakages
Some councils will require proof of insurance, while others won’t.
A spokesperson for A-Plan Insurance stated: “The Queen’s Jubilee is to celebrate her 70 years of service. Her Majesty The Queen is extremely well respected by many and is well-loved for her oath to duty, love of the people and even her sense of humour.
“Millions of people want to celebrate this milestone with her and we want to ensure that people are aware of the guidelines before throwing their party.
“To reiterate, as a Platinum Jubilee Street Party is a one-off event, you won’t need a risk assessment or licence for the consumption of alcohol. That doesn’t mean that there is no risk.
“We would encourage anyone organizing a Jubilee party to have street party insurance cover in place. We look forward to this huge, worldwide celebration.”
Male motorists are clocking-up more than twice as many penalty points as their female counterparts, according to new data from the Department for Transport (DfT).
Male drivers racking up three penalty points on their licences currently total 1,343,700, compared to 606,700 for female drivers, as of the 5 February this year.
The number of male drivers with six points is 395,000, whereas with female motorists the figure is 120,600.
Greg Wilson, Founder of Quotezone.co.uk, a leading insurance comparison website, comments: “The data suggests that women are the more cautious drivers – racking up less penalty points. However, the differences are stark to say the least and concerning.”
Greg Wilson warns that law breaking motorists will feel the effect: “At a time when all of us are looking to tighten our belts, penalty points can really hit motorists in the pocket. In addition to legal fines that accompany the points, offending motorists’ insurance companies will reassess how they see their risk and in turn premium.
“Three points can raise insurance premiums by 5%, but can rachet up fees by as much as 25% if a motorist has six points on a licence. Remember, penalty points stay on a licence for four years and the corresponding rise in insurance fees may do so as well.”
The data further shows that 1,120 women and 6,100 men have 12 points on their licences, which leads to an automatic ban – called a TT99. If a driver is disqualified from driving under this ‘totting up’ system, they will have had a TT99 conviction code added to their driving record, which means they’ll likely have to pay considerably more for their ‘TT99 insurance’ after the period of disqualification ends.
Greg Wilson continues: “Motorists who can prove exceptional circumstances in court may be allowed to continue driving, but the courts are far from pushovers and the judge has the power to award the maximum fine and determine the length of the ban – over 56 days means the driver has to reapply for the license and maybe even retest.”
Insurance providers are prohibited from using gender as part of their risk analysis calculation, as per The Equality Act established in 2010. They use other factors such as the level of no claims bonus secured, age, postcode, vehicle specifications and of course, number of penalty points incurred, to help determine the most appropriate premium price per customer.
Motorists who want to reduce the effect of penalty points might try the following to keep their premiums as low as possible:
Sign-up to a telematics product recognised by their insurance firm, which allows them to showcase their new safer driving behaviour
There are specialist insurance policies for drivers with penalty points that can help – shop around on comparison websites for specialist driver policies
The cost of car insurance in Scotland has increased by £25 in three months
New data shows car insurance prices are increasing, with drivers in Scotland now paying £419, on average
● Despite prices rising across all areas of Scotland, the average premium is still £22 (5%) cheaper than 12 months ago
● Drivers in Central Scotland pay more than the national average, with motorists in the region paying £465, on average, following the steepest quarterly increase (8%) of all UK regions
● Meanwhile, drivers in other regions of Scotland pay as little as £342, on average, in comparison
● Experts at Confused.com remind drivers that recent FCA changes do not guarantee their renewal price will be their best price available
● Further research shows insurers increased renewal premiums last quarter by £45, on average
The average cost of car insurance in Scotland has increased by £25 in just three months, new data reveals.
This brings the average price of car insurance in Scotland to £419, a 6% increase compared to three months ago. That’s according to the latest car insurance price index (Q4) by Confused.com, powered by WTW. Based on more than six million quotes in a quarter, it’s the most comprehensive car insurance price index in the UK.
While the cost of car insurance in Scotland appears to be increasing, prices are still cheaper than this time last year, having dropped by £22 (5%) in 12 months, with prices across the Scottish regions still significantly cheaper than two years ago.
While the average premium in Scotland stands at £419, the price paid by drivers will vary depending on where they live. In fact, motorists in Central Scotland are paying more than the national average, having seen the steepest increase in premiums in the past three months of all UK regions. An 8% (£33) increase in the region means motorists are now paying £465, on average. Although, this is still £17 (4%) cheaper than prices 12 months ago.
Meanwhile, drivers in other Scottish regions are paying out between £342 and £378, on average, with prices now as much as £18 (5%) more expensive than last quarter:
Region
Average premium
Quarterly change
Annual change
Central Scotland
£465
8% / £33
-4% / -£17
East & North East Scotland
£378
5% / £16
-6% / -£26
Highlands & Islands
£377
5% / £18
-6% / -£25
Scottish Borders
£342
4% / £15
-9% / -£32
This increase in prices over the past quarter is reflected across the rest of the UK, where prices have risen by £25 (5%) in three months. This brings the average cost of car insurance in the UK to £539 – a £36 (6%) drop compared to 12 months ago.
While these price increases may come as bad news to drivers, Confused.com experts have been predicting this U-turn for some time. A significant drop in the number of cars on the road throughout the coronavirus pandemic, and a subsequent fall in the number of claims being made led to a sharp drop in premiums with prices reaching a six-year low just last quarter.
However, prior to this, prices were steadily starting to increase as claims pay outs were becoming more and more expensive for insurers, as the pandemic and ongoing delays caused by Brexit meant that repairs and replacements were not only more expensive but taking longer to complete. And this was reflected in the prices being offered to customers.
Now, as drivers spend more time on the road, and the number and overall cost of claims being made are increasing, as predicted, the cost of car insurance is increasing to reflect this and could soon return to pre-pandemic levels.
In fact, if the average price for the UK continues on the current trajectory, increasing by around 5% each quarter, the average cost of insurance in three months could be more expensive than it was 12 months ago. Based on this trend, UK drivers could be paying as much as £566 next quarter, compared to £538 in Q1 2021, on average.
In light of the recent insurance pricing changes enforced by the Financial Conduct Authority (FCA), Louise O’Shea, CEO at Confused.com, reminds drivers that these increases could mean that they may receive a more expensive renewal price in the coming months, despite many incorrectly believing that the changes guarantee a cheaper or flat premium.
Under the new regulations, insurers must offer drivers the same price they would receive as a new customer buying in the same way, banning what was previously known as a new customer discount.
Previously renewing customers may have seen their renewal price rise to offset the cost of new customer discounts. However, the new rules don’t guarantee that drivers will never see their renewal price increase again.
For example, if car insurance costs in the UK are typically 5% more expensive year-on-year, this increase could also be reflected in renewal premiums. In fact, further research by Confused.com found that two in five (42%) drivers who received their renewal last quarter saw their price increase by £45, on average, suggesting insurers could already be increasing renewal premiums in line with the current trend.
This is why it is important for drivers to still take the time to shop around, as the research also shows that almost half (46%) of those who had a higher premium at their last renewal were able to save £64, on average, by switching to another insurer using a price comparison site.
Although, it isn’t just those who are seeing more expensive premiums that are able to make savings, as almost a fifth (18%) of those who had a cheaper renewal went on to shop around and switch, saving £46 on average. However, with Confused.com’s Beat Your Renewal guarantee, these savings could be seen by millions of other customers.
However, there is some good news for drivers, as prices of new policies are still cheaper year-on-year, on average, which means those shopping around and switching insurers could still save money. And under the new FCA rules, insurers must make it easier for customers to cancel the automatic renewal of their policies, something which one in five (20%) consider to be stressful.
Despite being able to save when shopping around, some drivers are still paying more than others, and typically it’s male motorists who are forking out the most when it comes to their car insurance.
Given the fact that drivers in Central Scotland are paying significantly more than those in other Scottish regions, it’s no surprise that both male and female drivers have the highest car insurance costs.
Broken down, male drivers in Central Scotland are now paying £486, on average, following a £33 (7%) increase in the past three months, while female drivers are paying £429, which is £31 (8%) more than three months ago.
East and North East Scotland follows as the second most expensive region for male drivers, with the average premium here now £400. This is £59 more than the prices that female drivers in the region are paying (£341).
Similarly, much like the rest of the UK, younger drivers across all four regions are forking out the most for their car insurance, with 17-to-20-year-old male drivers in Central Scotland paying an eye-watering £1,343, on average. Female drivers of the same age and location pay just £1,041 in comparison.
However, it’s male drivers in their early 20s in both the Scottish Highlands and Islands and Central Scotland who have been stung by the steepest increases this quarter, as the average premium rises by 13% and 12%, respectively.
This equates to increases of £102 and £106, putting the average price paid at £874 and £995, respectively. These drivers are also among the few that have seen their premium increase over the past year, as prices increase by £30 (4%) for 21-to-25 year old male drivers in the Highlands and Islands, and by £13 (1%) for those in Central Scotland.
Looking to the towns and cities in Scotland, the price paid varies depending on where a driver lives. Of all postcode areas in Scotland, Glasgow is revealed to be the most expensive, with motorists forking out £525, on average – a significant amount more than the regional average. This is a £47 (10%) increase compared to three months ago, making the average premium just £4 ( 1%) cheaper than last year’s price.
In the Scottish Highlands and Islands, it’s motorists in Shetland that are paying out the most, with average prices in the area now £490, while drivers in Dundee face the highest premiums in the East and North East, paying out £386, on average. In the Scottish Borders, it’s drivers in Dumfries that have the highest car insurance costs, standing at £344, on average.
This shift in car insurance prices was to be expected, as drivers resume their normal habits. Given the current cost of fuel and the uncertainty surrounding the energy market, these increases will no doubt hit drivers’ wallets hard. However, this doesn’t mean that drivers can’t save money on their car insurance, as shopping around can still save potentially hundreds of pounds.
Louise O’Shea, CEO at Confused.com, comments: “Car insurance prices rising is not the happy news we wanted to start the year with, however it’s also not completely unexpected, as people resume their normal driving habits, and the cost of vehicle repair and replacement continues to increase.
“Although, customers who are shopping around are still receiving prices that are cheaper than 12 months ago, which is especially good news at the moment, as some customers are still seeing their renewal price increase year-on-year. This just goes to prove that there are still plenty of better deals out there.
“As claims costs continue to increase, we expect to see car insurance prices rise too, regardless of the change in pricing regulations by the FCA. And this will be particularly noticeable when we receive our renewal price after 18 months or so of considerably cheap premiums.
“It’s really important that we remember the new rules set out by the FCA do not mean our renewal price will be the best price we can get. If anything, these changes have made the market even more competitive, so there will likely be an insurer out there that could be cheaper or offer a better deal for the cover you need.
“Please don’t settle for your renewal quote from your insurer. We know that there will always be a saving to be made. We’re so sure of this that we’re offering to beat your renewal quote or give you the difference, plus £20.”
