shop around – The NEN – North Edinburgh News

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

Some drivers in Central Scotland and in East and North East Scotland are paying more than ever before for their car insurance. That’s as costs in areas such as Edinburgh and Dundee hit record-breaking figures.
However, Glasgow is the most expensive area in all of Scotland. Drivers can expect to pay £601, following an annual increase of £107.
And it’s a similar picture in the UK. That’s as prices increase by £100 to £629, on average.
Louise Thomas, car insurance expert at Confused.com reminds drivers shouldn’t give in to auto-renewal quotes from their insurer. That’s as further research shows UK drivers are saving £59, on average, when shopping and switching⁽²⁾
How can I save money on my car insurance? Confused.com provides top tips for getting cheaper car insurance, as cost of living crisis continues to impact the UK

The average cost of car insurance in Scotland has grown by 22% in just 12 months. That means drivers in the region are now paying on average £89 more than they did this time last year, new data reveals.

The increase means that drivers in Scotland are now paying £497 for their car insurance, on average. That’s according to the latest Confused.com car insurance price index, powered by WTW. Based on more than 6 million quotes over the quarter, it’s the most comprehensive car insurance price index for new business in the UK.

But some areas in Scotland might be pricier than others. The average cost of car insurance in Central Scotland is now £547, on average, following a £100 (22%) annual increase. This also makes it the most expensive region of Scotland overall.

For drivers in the East and North East, prices have increased to £456, on average, as insurance grew by £80 (21%) year-on-year.

And the latest data also reveals that these areas of Scotland are seeing record-breaking figures since Confused.com’s price index first began in 2006, so drivers might have noticed a recent spike in their premiums.

In Central Scotland, car insurance prices in Motherwell, Kilmarnock and Edinburgh all saw the highest costs recorded.

This means drivers were paying as much as £556, £483 and £488 respectively for their car insurance, on average. And for those living in the East and North East of Scotland, Dundee and Kirkcaldy also saw prices soar higher than years previously. These costs hit £472 and £453 respectively, on average.

Drivers in the Highlands and Islands have also seen rising costs. That’s as the average cost of car insurance in this part of the country has increased by 21%, to £448 on average. But the Scottish Borders is the cheapest overall. Despite a £70 (20%) annual increase, prices are £418, on average.

Despite some of the highest prices recorded in Scotland this quarter, these aren’t necessarily the steepest costs. In Glasgow, prices grew by £107 (21%) in 12 months, on average. That means prices are now £604 for drivers, on average, and the most expensive area in Scotland.

This quarter, Paisley also tops the list as one of the highest areas in Scotland, with a £95 (23%) annual increase. Drivers can now expect to pay around £501, on average. The cheapest area in Scotland is the Hebrides. Despite a 21% annual increase (£66), the cost of car insurance is £388, on average. This is 36% cheaper than Glasgow, the most expensive area in the country.

And it’s not just the annual increases that have packed a punch when it comes to insurance prices. In the past 3 months alone, the average cost of car insurance across Scotland has grown by 7%. That’s a £34 increase in premium costs, compared to motorists who took out insurance between July and September last year (Q3 2022). Here’s how the figures currently stand in each area:

Central Scotland:

Postcode area	Average premium	Annual change (%)	Annual change (£)
Edinburgh	£488	+22	+87
Glasgow	£604	+21	+107
Kilmarnock	£483	+25	+97
Motherwell	£556	+24	+107

Scottish Borders:

Postcode area	Average premium	Annual change (%)	Annual change (£)
Dumfries	£416	+20	+69
Galashiels	£421	+21	+72

East & North East Scotland:

Postcode area	Average premium	Annual change (%)	Annual change (£)
Aberdeen	£449	+20	+73
Dundee	£472	+24	+91
Kirkcaldy	£453	+22	+82

Scottish Highlands and Islands:

Postcode area	Average premium	Annual change (%)	Annual change (£)
Falkirk	£449	+21	+76
Hebrides	£388	+21	+66
Inverness	£417	+22	+74
Kirkwall	£393	+17	+57
Paisley	£501	+23	+95
Perth	£422	+22	+75
Shetland	£488	+10	+43

But what’s causing the price hikes? The current UK average of car insurance prices shows the highest in 3 years, following a £100 (19%) increase over the past 12 months.

The UK average now sits at £629, one of the most expensive since before the coronavirus pandemic. And while insurers had to readjust their pricing in recent years to reflect the return of normal driving habits, this past 12 months has also seen a real shake up in the insurance industry.

Last January, the Financial Conduct Authority (FCA) introduced new regulations to prevent insurers from overpricing loyal customers⁽¹⁾. This meant that all prices offered had to be fair and purely based on a driver’s profile. With companies no longer able to inflate returning customer costs, insurers have also had to readjust their pricing to make up for this. But, as a result, new business prices are likely to have increased.

For this reason, Louise Thomas, car insurance expert at Confused.com reminds drivers why they shouldn’t give in to the ease of auto-renewal. Even if the offer does look good. That’s as further research shows how drivers are still saving money, even if their renewal works out cheaper than the previous year.

To investigate, Confused.com conducted a survey of 2,000 UK drivers⁽²⁾ that had their renewal in the last quarter. And the results show that 1 in 2 (50%) found their renewal price had increased compared to the previous year, by £46, on average.

Of these, 2 in 5 (40%) went on to shop around and switch insurers and save £55, on average. This goes to prove that shopping around could save money, even when prices appear to be increasing. However, 1 in 5 (20%) also found their renewal to be £38 cheaper, on average. Of these, more than 1 in 3 (34%) went on to shop around and switch insurers, saving £59 on average.

These savings are also being seen by customers, with significant savings being reported, even when renewal prices have been cheaper.

For example, Mr Allen saw his premium drop from £306 to £285. But, by shopping around he was able to secure a new price of £248. However, in most cases, customers have seen their renewal increase significantly, with shopping around saving a staggering £240 for one customer. In this case, the insurer increased their renewal by £200 to £720. However, shopping around saw them reduce their premium to £480.

While all drivers across the UK are seeing price increases this quarter, they’re impacting drivers differently. For example, male drivers are now paying £672, which is a 19% increase year on year – in line with the UK average. In terms of monetary value, this equates to a £44 increase in 3 months, and £105 year-on-year. Meanwhile, female motorists are now paying £557, following a 19% increase year on year. This means prices are now £90 more expensive, on average⁽³⁾.

It’s a similar picture for UK drivers of different ages, with some facing major hikes in their insurance costs compared to others. Typically, younger drivers pay the most for their insurance, so it’s no surprise that their increases are above £200 for some. Although, 18-year-olds have been hardest hit, as their premiums soar by a staggering £307 (22%) over the past 12 months. This puts the average premium for drivers this age at £1,715, making it the most expensive age for car insurance.

This isn’t the highest price recorded for drivers of this age. Recent increases, however, has made this the case for both 28 and 33 year olds. A £130 (17%) increase for drivers aged 28 puts the average premium at £912 – the most expensive price on record for this age. Similarly, 33-year-olds are now paying £786, following a £123 price increase, to make it a record-high for this age group.

These increases are significant. But much like any other cost increases people are facing in the current climate, it’s also clear that there are savings to be made. Shopping around is likely to help drivers save against their renewal price, which is no doubt a welcome saving as the cost of living crisis continues. But there are also ways in which drivers can make changes to their policy in order to save money.

This includes:

Paying annually instead of monthly – insurers often put an interest charge on monthly payments, so making a one-off payment avoids this
Being accurate with your mileage – choosing a lower mileage may in fact work out more expensive, as this could be seen as a less experienced driver. Similarly, if you’re no longer travelling the UK every week, be sure to let your insurer know!
Enhancing car security – anything that reduces the risk of your car being stolen will reduce the risk of claim, and this should be reflected in your price.

For more information please visit: https://www.confused.com/car-insurance/guides/tips-for-cheaper-car-insurance

Louise Thomas, car insurance expert at Confused.com comments: “The current financial climate is difficult for everyone right now, in all aspects of their life. With costs on the increase all around us, it can seem overwhelming at times to even know where to begin when it comes to cost-saving.

“Some costs can’t always be avoided, but one thing for sure is that the price we pay for car insurance isn’t a fixed cost. Choosing to automatically renew your car insurance with your current insurer might feel like the most stress-free and easy option, but financially you might not be better off. There’s lots of insurers in the market right now, so it’s likely that there could be better and more affordable options out there for you.

“But how will you know for sure? The best advice I can give is to shop around before you need to renew. This is the only way you can ensure that you’re paying the best price out there. In fact, we’re so confident that motorists can find cheaper deals by shopping around, that we guarantee to beat your renewal quote. And if we can’t, we’ll give you the difference, plus £20⁽⁴⁾! Either way, it’s a win-win for motorists!

“We also understand that things happen throughout the year, which could affect policies from time to time. But our tips on how to get cheap car insurance advises how you can ensure prices remain as low as possible. Things like multi-car policies or having a no-claims bonus are just a few ways in which you could save.”

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

Drivers currently paying £463 on average following a recent spike

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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”