Q3 Sees Modest Rise in Car Insurance Premiums

Motorists will be disappointed to read that, according to the MoneySuperMarket.com UK Car Insurance price index, the average amount paid for fully comprehensive car insurance increased slightly in the third quarter of 2021 when compared with the previous quarter.

Unfortunately, premiums rose by an average of getting on for £11 per annum. Whilst this is a rise of less than £1 per month it is something that drivers could do without at a time when many people have been and still are struggling financially due to the pandemic. The average premium was £412 per annum in the third quarter of 2021.

On a positive note, the average cost of such cover actually dropped by in excess of £48 per annum when compared with the third quarter of 2020 – i.e. 12 months previously. This is a reduction of over 10%.

One of the reasons why premiums have risen slightly is possibly due to more people using their vehicles as we have gradually been coming out of lockdown and people return to work and go away on holiday. With more cars on the roads this will no doubt have resulted in an increase in road traffic accidents leading to more insurance claims and payouts by insurers.

If you live in East London, on average, you are paying the most for such cover. The average premium is £865 per annum. The cheapest region for comprehensive car insurance is in Galashiels where motorists are paying an average of £257 per annum that is considerable less than the average of £412 per annum across the UK.

Age has an impact on the cost of car insurance. If you are 17 to 19 years of age, the average premium is £340 per annum. If you are 20 to 24 years of age, the average premium is £811 per annum. If you are more than 65 years of age, the average premium is £253 per annum.

When your existing cover is due for renewal or you are a new driver looking for car insurance, do consider shopping around for your cover as different insurance companies charge different amounts. In that respect, why not get in touch with us today to obtain a competitive quote without any obligation.

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