- Car insurance cost up 2.5% in last three months
- It is believed that the cost is increasing as more people come to his office.
- Premium still down 10.4% over last year
New research shows that the average cost of car insurance rose to £412 between July and September as more people start moving back to the office.
According to data from MoneySupermarket, the 2.5 percent increase — or a tenor — comes at a time when more commuters are on the road.
Despite this, prices still fell by 10.4 per cent annually – the equivalent of £48 – indicating that the number of cars on the road has still not returned to pre-pandemic levels.
Car insurance soars from £402 to £412 as more people start going back to their offices
Looking at premiums nationally, London has the highest driver’s premium at an average of £595.
Motorists in the capital are followed by those in the North West who are paying an average of £489 and those in the West Midlands who are spending £477.
Meanwhile, drivers in the South West paid at least £298 – £114 less than the national average.
The region seeing the biggest quarterly increase in prices is the East Midlands, with a 4.5 per cent increase – equivalent to an average jump of £17.
This was followed by a 4 per cent increase in the South West, equivalent to £11, and a 3.5 per cent increase in Scotland, equivalent to £11.
Drivers in the North East experienced the smallest increase of 1.1 percent, equivalent to £4.
|2020 Q3||2020 Q4||2021 Q1||2021 Q2||2021 Q3||QoQ £change||QoQ% change||YoY £ Change||% change year over year|
North East drivers paid £4. experienced the smallest increase of 1.1% in premium equivalent to
Kate Devine, car insurance specialist at MoneySupermarket, said: ‘After a significant drop in average premium prices at the start of the year, prices could rise as the economy reopens and more of us return to our cars.
Regionally, we see large differences in cost with cities like London seeing a higher premium than more rural places like the South West.
‘This is because insurers factor in the driver’s location when determining pricing policies – so if you are in a built-up area, you are considered at high risk for accident risk.’
When it comes to age, younger drivers were the only age group that saw a 1 percent drop in quarterly prices.
People aged 17 to 19 saw a 1 percent drop, while drivers aged 21 to 24 and 25 to 29 saw a 1.6 percent drop.
All other age groups saw an increase in prices, with drivers aged 40 to 49 seeing the highest quarterly premium increase of 1.8 per cent, which equates to £7.40.
Devine said: ‘Age also has an impact, with drivers over the age of 40 seeing the biggest premium increases.
‘This is probably due to older drivers being more on the roads which increases their risk factors.’
Customers are encouraged to use price comparison sites to see if they can save money on their car insurance.
Many can save hundreds on their annual premium.
‘The good news is that wherever you live and whatever your age group, saving money on your car insurance is quick and easy.
‘To avoid higher costs, make sure you don’t let your policy auto-renew and shop early for the best deals – this could save you up to £253.’