Price of car insurance up 20% - as drivers told how to bring cost down
Drivers taking out insurance in the first three months of this year would find it cost them 拢637 on average - around 20% higher than it was in the same period last year.
Wednesday 26 April 2023 11:33, UK
The average cost of car insurance is now 拢107 more expensive than it was 12 months ago, new data has found.
Drivers taking out insurance in the first three months of this year would find it cost them £637 on average - around 20% more than it was in the same period last year.
It also means insurance prices are their highest since 2011.
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The research carried out by One Poll for insurance aggregate website Confused.com also found that of the 2,000 UK surveyed, more than half (55%) received a higher renewal price than if they shopped around.
On average, those surveyed had a renewal price £53 higher than their existing policy, compared to £28 higher according to the latest index data reports.
Where prices rose the most
Those living in inner London saw the biggest price increases - up by £203 (23%) on average.
Drivers in Northern Ireland saw prices increase by an average of £123 or 21%, and Central Scotland also saw an increase of £105 (22%).
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Drivers aged 21 saw the biggest increase in average insurance price for the last three months, up £271 (23%), meaning their average policy costs £1,471.
However, for increases over the past 12 months, 17-year-olds saw the biggest average growth - up £446, or 38%, on average.
How to combat price rises
When it comes to saving money, shopping around and comparing your renewal quote can be the best way to save money.
Louise Thomas, Confused.com car insurance expert, said: "For drivers who've bought policies already this year, the spike in costs might have come as quite a shock.
"But although there are increases for both new and existing drivers, the evidence shows how shopping and switching at renewal can save money.
"With the average cost of car insurance around £657, drivers might be thinking how they can help to keep costs down.
"As well as using price comparison sites to find the best deals, drivers should also be accurate with the information they give to insurers.
"For example, telling your provider that you drive fewer miles than you actually do doesn't necessarily mean that you'll get a cheaper price.
"If feasible, paying for your insurance annually and having a multi-car policy can also help with the price you pay."