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Car insurance premiums up 14% with the biggest annual increase in 5 years

UK drivers are now paying £586 for their car insurance, on average

Published on 20th October 2022
  • The average cost has increased by £32 (6%) in the past 3 months, making this the most expensive quarter of 2022.
  • 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%) 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 some drivers still paying more than they need to, the Financial Conduct Authority (FCA) has publicly encouraged consumers to shop around for the best deals.
  • 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.

New data reveals that the current cost of car insurance is up 14% year-on-year. That’s the biggest annual increase in the past 5 years.

The current UK average is now £586, but insurance premiums have also continued to rise for the last 4 quarters in a row. In the past 3 months alone, premiums have increased for motorists by £32 (6%), on average. 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.

This quarter is also proving to be the most expensive in 2022, and further research conducted by Confused.com finds that some insurers don’t seem to be doing enough to protect their existing customers from rising costs. 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(3).

Earlier this year, the FCA made important changes to stop ‘price walking’ and ensure all customers were treated fairly(4), 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(1). 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.

With 2022 proving a financially challenging year, the current cost-of-living crisis is certainly a worry for millions across the UK. Data shows that the market has been volatile since the pandemic, which is why Louise O’Shea, CEO at Confused.com, highlights the importance of shopping around. And it’s all for good reason, as the latest figures show that drivers in some UK regions might be taking the biggest blow with their premiums.

Data reveals that drivers in central London have seen the biggest increases in the past 12 months. Drivers in this region are now paying £936 for their car insurance, on average. That's an annual increase of £132 (16%).

And while the UK average stands at £586, the cost of premiums can also fluctuate based on the region you live in, your age and your gender.

All drivers faced increases in the past 12 months, but data reveals that drivers aged 19 seem to be facing the biggest financial hit. That’s because their car insurance prices have reached £1,488, on average. This was the biggest annual and quarterly increase of any age bracket, with prices rising by £233 (19%) year-on-year and £168 (13%) in the past 3 months alone. Male drivers also continue to pay higher premiums than female drivers, with a £112 difference, on average. Data shows that male drivers are paying £628, on average, while females are paying £516, on average(2).

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 across the board, I'm sure it comes as no surprise that the price 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.”


Notes to editors

Media information:
Confused.com press office:


For further information:
Confused.com car insurance price index

About Confused.com

Launched in 2002, Confused.com was the UK's first digital marketplace for car insurance and is one of the leading brands in the sector, generating over one million quotes per month. It has expanded its range of comparison products over the years to include home insurance, van insurance, motorcycle insurance, and car finance comparison, as well as a number of tools designed to save consumers money.

Confused.com is not a supplier, insurance company or broker. It provides an objective and unbiased service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com’s service is based on the most up-to-date information provided by UK suppliers and industry regulators.

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More information

Confused.com car insurance price index

The most comprehensive analysis of car insurance premiums in the UK – compiled by motoring experts just for you! How much will you be paying?

About the index:

The index is compiled using anonymous data from all enquiries submitted on Confused.com. In line with the draft Office of Fair Trading (OFT) commitments on the use of competitor price data, the prices used for calculating the index are based on an average of the best five quotes received on Confused.com. The OFT closed on 1 April 2014 and the commitments are now governed by the Competition and Markets Authority (CMA).

About WTW:

WTW (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, WTW has 45,000 employees in more than 140 countries and markets. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.