Snooze and lose - Half of drivers hit with higher insurance renewals

• Further research finds more than half (51%) of UK drivers received a higher renewal price in the past 3 months, further research finds
• Yet, those who received a higher price from their current insurer and shopped around saved £80 compared to their renewal price, on average
• Premiums for younger drivers dropped as much as £259 in the past 12 months for those shopping around
• Meanwhile premiums in Inner London - the most expensive UK region - fall by £70 in 12 months, to £1,079, on average
• Matt Crole-Rees, motoring expert at Confused.com car insurance, offers drivers tips to lower their costs even further

The latest car insurance price index from Confused.com reveals drivers are now paying £713 for their car insurance, on average.

That’s according to the latest car insurance price index by Confused.com, powered by WTW. Based on more than 6 million quotes for new car insurance policies, it’s the longest established car insurance price index in the UK. The index is compiled using average premiums quoted through Confused.com for customers purchasing a new car insurance policy.

However, further research shows that half of UK drivers are at risk of paying more than £800 for their car insurance unnecessarily¹.

A survey of 2,000 UK drivers² found that more than half (51%) of UK drivers have been hit with increased renewal premiums in the past 3 months, of £68, on average. This time last year, car insurance premiums were £735, on average. This means if they simply accepted their renewal price, they could now be paying more than £800 for their car insurance - a £90 increase compared to the price drivers are paying today¹.

However, the research proved that shopping can in fact save motorists a significant amount. Those who shopped around and switched providers saved £80, on average. This is money drivers could be losing by simply accepting their renewal price and not searching the market for a better deal.

At the same time, just under 1 in 5 (19%) drivers received a cheaper renewal in the past 3 months, with many still able to save even more by switching providers. Those with a cheaper renewal who shopped around saved £53 compared to their renewal price, on average.

Confused.com’s price index data shows that car insurance prices have been fairly stable over the past 12 months, having only decreased by £22 (-3%), since this time last year. In fact, the data shows that premiums are now 17% cheaper compared to 2 years ago. And this could lead to many motorists debating the benefit of switching their insurance. However, it’s clear from data that doing so is likely to result in bagging a better deal.

And further data also finds that running a quote 28 days before your renewal is due could be the key to getting the best price⁴. Confused.com car insurance data shows that running a quote around 28 days before renewal could be 53% cheaper than buying on the renewal day.

While the data shows that average premiums are now £713, prices can vary depending on a driver’s age or where they live. And this is also true for how much they could save when they shop around.

According to the data, young drivers in particular are seeing the greatest year-on-year savings, according to the index. 17-year-olds in particular are now paying £1,755 for their car insurance, which is £253 (-13%) cheaper compared to 12 months ago. Similarly, 18-year-olds are now paying £259 (-11%) less over the same period, with the average premium for this age group now £2,083. This is in fact the most expensive premium for all age groups, followed by 19-year-olds, who are now paying £1,853 for their car insurance, on average.

However, the data also shows that prices are starting to increase for some young drivers. Our data shows the cost of insurance for drivers aged 23 and younger has increased in the past 3 months, by as much as £64 (4%), on average. This emphasises the need for young motorists to be savvy when it comes to their insurance and shop around to ensure they’re getting the best deal, whether it's higher or lower than the previous year.

Meanwhile, some older drivers, particularly those in retirement age, have in fact seen their premium increase in the past 12 months. 70-year-olds are now paying £20 (5%) more for their car insurance compared to this time last year. The average price for this age group is now £411. It’s a similar picture for over 70s and motorists in their late 60s, who have all seen a small increase in how much they’re paying for their insurance.

It’s a similar picture in different regions of the UK, with some paying more, but seeing the biggest savings. Inner London in particular is the most expensive region in the UK for car insurance. Here motorists are now paying £1,079 for their car insurance, on average. However, this is a £70 (-6%) drop compared to 12 months ago. Both Outer London and the North West have also seen a 6% decrease in prices, equivalent to £55 and £46, respectively, on average.

However, drivers in some UK regions are likely to see their price increase if they shop around. In Northern Ireland, prices have increased significantly, at £209 (25%) year-on-year. Here the average price of car insurance is now £1,059. In Central Scotland, prices have increased by £20 (3%) to £688, on average. And in other parts of Scotland, prices are as much as £10 more expensive, compared to 12 months ago.

Car insurance isn’t the only motoring expense that drivers are battling. That’s as recent reports suggest fuel prices are on the rise. According to statistics from the Department for Energy Security and Net Zero³, the average price of petrol is now 168.1p for petrol, and 190.7p for diesel. Around this time last year, petrol was 133.8p and diesel 141.7p, in comparison. That’s an extra £390 per year for petrol, and £445 for diesel.

Both fuel and insurance are necessities for drivers. And while fuel is a volatile cost that can change from month-to-month, how much a driver pays for their insurance is locked in for 12 months. Which is why it’s important for motorists to be looking for ways to save where they can.

Shopping around early isn’t the only way drivers could save money on their car insurance. Experts at Confused.com offer more tips to help drivers cut costs even further:

• Don’t over or underestimate your mileage: be honest about your mileage, guessing in either direction can cost you. Underdeclaring your mileage to get a cheaper price can invalidate your policy. While overestimating might mean you’re paying too much. Be honest and you’ll be certain you’re getting the most accurate price for you.


• Share the driving: If you live with a partner, parent or child who could benefit from using your car from time to time, add them to the insurance. Data shows that those who are the sole driver on a car pay £806 for their insurance vs £691 paid by those who have an additional named driver. But be honest, if you’re not sharing the car, don’t add them.


• Enhance your security: Simply put, the harder your car is to steal, the less of a risk it is. And this could mean you get cheaper car insurance. While most cars come with an immobiliser and alarm as standard, adding things like a wheel lock or tracking device could save you money. Also consider where your car is parked, especially at night. Opt for a well-lit area if you can. Driveways and residential parking areas generally seem to be considered a lower risk.

For more tips on how to save on car insurance, visit: www.confused.com/compare-car-insurance/tips-for-cheaper-car-insurance

Matt Crole-Rees, motoring expert for Car Insurance at Confused.com, comments,

Notes to editors