In Q1 of 2019 there was a fall in the average cost of motor insurance but, regrettably, this drop has been short-lived as there has been an increase in Q2 of 2019. This is concerning news for a number of people with such cover.
Every quarter sees the publication of the Confused.com car insurance price index that looks at the average cost of fully comprehensive car insurance here in the UK. It has recently published the data for the second quarter of 2019.
In Q2 of 2019 the average premium for fully comprehensive car insurance was £789 per annum. This was an average rise of £27 per annum compared to Q1 of 2019. Furthermore, in the last year, the cost of such cover has gone up by an average of £37 per annum – a rise of 5% and something that motorists could do without.
It is the young motorist who is paying most for their car insurance with someone aged 17 paying an average of £2,047 per annum. That is probably more than a lot of people are paying per month to repay a car loan. A 21 year old is paying an average of £1,639 per annum for fully comprehensive cover. The lowest premium is paid by a 66 year old who is paying an average of £434 per annum – 21.2% of what a 17 year old is paying.
A significant number of young drivers are looking at telematics cover (also known as black box insurance) as such policies can sometimes work out cheaper than the traditional type of motor insurance as it takes into account such things as how the car is being driven and when and where it is being driven.
The majority of areas in the UK saw premiums increase in the second quarter of 2019 with the biggest increase being for drivers who reside in Inner London. Such motorists saw their premiums rise by an average of £61 per annum to an average of £1,214 per annum. In Merseyside and Manchester premiums rose by an average of £42 per annum to an average of £1,011 per annum.
Men are paying an average of £86 per annum more for comprehensive car insurance than women. Men pay an average of £827 per annum and women pay an average of £741 per annum.
If you are looking to take out car insurance for the first time or your policy is shortly due for renewal then you may wish to shop around to try to find a competitive deal for the cover. One option is to use a price comparison website that has a panel made up of dozens of car insurance providers.