Car Insurance Premiums Rise In A Year

Motorists will be disappointed to read that, according to the Car Insurance Price Index, the average cost of fully comprehensive car insurance has gone up in the last year. At the end of the first quarter of 2019, the average cost of such cover stood at £762 per annum but by the end of the first quarter of 2020 the cost of such insurance had risen by £47 per annum to £809 per annum – a rise of 6%. This news is not good timing considering the pandemic the world is facing due to coronavirus. Having said that, there has been a small drop of £6 per annum when compared with the last quarter of 2019.

When you look at the cost on a regional basis, Inner London is the most expensive with motorists paying an average of £1,272 per annum. This is an additional £119 per annum in comparison to a year ago. If you live in the West Midlands, the average is £995 per annum with this figure having gone up by £59 in a year. The same rise was seen in Merseyside and Manchester with the average cost being £1,032 per annum. In the north west of Scotland the average price paid for such insurance amounted to £640 per annum.

Young motorists are paying more for their car insurance than other drivers with an 18 year old paying an average of £2,134 per annum. A 17 year old is being charged an average of £2,026 per annum. Someone who is 36 years of age is paying an average of £674 per annum and a 67 year old an average of £485 per annum.

Apparently, a man is paying an average of £85 per annum more for their car insurance than a woman is.

You may be interested to read that we have heard of one insurance company that is going to refund those of its customers who have car insurance with them as at 20th April 2020 with the sum of £25. This is because there are fewer claims being received as there are fewer cars on the roads due to the coronavirus. It will be interesting to see if some other car insurance providers decide to do a similar thing.

It is important that you shop around for your car insurance as premiums vary between companies. So, whether you are taking out motor insurance for the first time or your policy is shortly due to be renewed get some competitive quotes. One of the ways of doing this is to use a price comparison website. You may also like to use our website to obtain a quote.

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