The average cost in Scotland is now £435, following a £31 (8%) increase year-on-year, according to the Confused.com car insurance price index
- According to the data, Central Scotland is the most expensive region, with motorists paying £477 for their car insurance, on average. This is an increase of £34 (8%) year-on-year.
- Drivers in the Scottish Borders pay the cheapest price for car insurance, despite a £29 (9%) year-on-year increase. Drivers in this region can expect to pay £366, on average.
- Further research shows that almost half (45%) of drivers who received a renewal quote last quarter saw a price increase of £41, on average. However, drivers who shopped around on a price comparison site saved £54, on average (1) .
- Louise O’Shea, CEO at Confused.com urges drivers to shop around ahead of time and to consider opting for annual payments, which could save drivers as much as 10% on their car insurance(3)
- How to save money on your car insurance: Confused. money on your car insurance: Confused.com expert tips aim to help drivers save more on their insurance as the cost of living rapidly increases.
Car insurance costs across the Scottish regions are at the highest in almost two years following the steepest increase in prices since before the COVID-19 pandemic (Q4 2020), new data reveals.
The average cost of car insurance in Scotland now stands at £435, on average, with drivers seeing an increase of £31 (8%) compared to this time last year. That’s according to the latest car insurance price index (Q2 2022) from Confused.com, powered by WTW. Based on six million quotes a quarter, it’s the most comprehensive car insurance price index in the UK.
However, some drivers could expect to pay more than the national average, depending on the region in which they live. The data shows that drivers in Central Scotland pay the highest prices for car insurance, with the cost now £477, following a £34 (8%) increase compared to this time last year. Despite an annual increase of £29 (9%), drivers living in the Scottish Borders pay the cheapest costs for their car insurance, with an average premium of £366.
Meanwhile, drivers in East and North East Scotland are now paying £399 for their car insurance, following a £27 (7%) increase year-on-year. And drivers in the Scottish Highland and Islands are paying a premium of £394, on average, following an increase of £30 (8%).
Region Average Premium YOY £ YOY %
Scottish Borders £ 366 £29 9%
Central Scotland £ 477 £34 8%
East & North East Scotland £ 399 £27 7%
Scottish Highlands & Islands £ 394 £30 8%
It’s a similar picture across the rest of the UK, where prices increased by £32 (6%) over the past 12 months to £554. This is the highest prices have been across the UK in almost 2 years.
The reports of steeper car insurance costs might come as bad news for Scottish motorists, which is why it’s never been so important to shop around for the best deals when it’s time to renew.
However, while prices are increasing for most drivers across the UK, further research by Confused.com shows that many loyal customers are still taking a bigger blow, having seen their renewal increase more than the price of a new policy, on average.
A survey of 2,000 UK drivers(1) found that almost half (45%) of those who received their renewal last quarter saw their price increase by £41, on average. This is despite 1 in 10 (10%) drivers who have renewed their car insurance since January 2022 believing that prices wouldn’t increase after Financial Conduct Authority (FCA)(2) changes earlier this year. However, while prices are increasing for new policies too, the data shows that drivers could still save money by shopping around and taking out a new policy.
In fact, those who shopped around after receiving a more expensive renewal price saved £54, on average, after using a price comparison website and switching insurers.
Louise O’Shea, CEO at Confused.com reminds drivers that the recent FCA changes do not always mean a cheaper or like-for-like renewal price, as any increase to the average UK car insurance costs will be reflected in renewal premiums. And it’s likely that prices will continue to increase as motorists spend more time on the road, meaning that likelihood of claims will increase too.
It’s evident from the latest data that increases have been seen across other regions too, with the UK average premium now £554 – that’s £32 (6%) more expensive than 12 months ago.
However, despite annual increases across all regions, some areas in Scotland have in fact benefitted from a decrease in costs over the last quarter. For instance, although there has been an annual increase of £59 (16%) in Shetland, the average cost for car insurance in the area has actually decreased by £19 (4%) since the last quarter. Drivers in Aberdeen have also seen the average premium cost decrease by £2, making their annual cost £397, on average.
But despite small wins for some, other areas continue to see increased car insurance costs. For drivers in Glasgow, the average cost for car insurance is £523. This is a £39 (8%) increase compared to this time last year and also currently makes Glasgow the most expensive area in the whole of Scotland.
While prices are on the increase, data shows that female drivers are still paying cheaper prices compared to males(4). For males aged 17-20 in Central Scotland, car insurance prices are the most expensive in comparison to all other Scottish regions.
These costs have increased by an eye-watering £110 (8%) in the last 12 months, on average. Female drivers in Central Scotland also saw a 6% increase year-on-year, but this equates to £59 in comparison. In the past 12 months, the total cost for drivers aged 17-20 in this region has increased to £1,479 for males and £1,140 for females.
With the cost of living crisis worsening and further household bill hikes expected later in the year, drivers need to be savvier than ever. And when it comes to their car insurance, drivers should be shopping around, as it’s one expense that could guarantee a saving.
An option for drivers to save money on their insurance is by choosing for annual payments. While monthly direct debits may be the most convenient option, paying upfront for an annual cost could save drivers an extra 10% when taking out a new policy(3).
With so much to consider when it comes to car insurance, it can be confusing for drivers to know which factors will produce the best savings. To help motorists understand where savings could be made, Confused.com has created 16 tips to get cheaper car insurance costs. And it could be as simple as making sure all of your details are correct when taking out insurance.
Louise O’Shea, CEO at Confused.com comments: “With millions stung by the current cost of living, it can be disheartening to see that car insurance prices are also on the rise. As the latest data shows, we’re seeing some of the highest spikes in prices since before the pandemic.
“With us all still adjusting to life after lockdown, it’s likely that this is due to the number of insurance claims being made increasing as we get back into some sort of routine. Unfortunately, this means that you might notice a price increase when renewing or shopping for your car insurance.
“While prices are increasing, we know that car insurance is one area where you can still save money, which will help to balance out price hikes in other areas. It’s clear from research that renewal prices are often more expensive, and it can be easy to accept a higher price if it doesn’t look too bad given the expectation that everything is increasing at the moment. But please don’t do this. You can pay less!
“The car insurance market is very competitive right now, which is the perfect time to be savvy and shop around for a better deal. Taking some time to research the best available options can really pay off. We know there’s an insurer out there who can offer you a better price, which is why we guarantee to beat your renewal(5). And if we can’t, we’ll give you the difference, plus £20. So, if anything, you will make money!”
