Car insurance is about to hit the road again
FOLLOWING a major drop in car insurance prices at the start of the year, a rise in the third quarter suggests that prices could be on their way up again as more and more of us get back on the roads for work. Despite this recent rise, year-on-year prices are still down by around 10 per cent, or £48. Looking at premiums nationally, drivers in London continue to have the highest premiums at £595, followed by those in the north-west of England and those in the West Midlands of England at just under £500 each. Scottish drivers will have seen an increase of around 3.5 per cent or £11. The region that has seen the biggest quarterly increase in prices is the East Midlands, with a a rise of 4.5 per cent – equivalent to an average jump of £17. The smallest increase has been in the northeast of England at just over one per cent. When it comes to age, younger drivers aged 17 to 29 were the only age group to see quarterly price falls of just over one per cent. All other age groups saw price rises, with drivers aged 40 to 49 seeing the highest quarterly premium increases of 1.8 per cent, equivalent to £7.40. Kate Devine, car insurance expert at MoneySuperMarket, said: “Following significant drops in average premiums prices at the start of the year, prices might be on the rise as the economy reopens and more of us return to our cars.
“Regionally, we continue to see big differences in costs with cities like London seeing higher premiums than more rural places such as the south-west.
“This is because insurers factor in a driver’s location when pricing policies – so if you’re in a built-up area, you’re perceived as having higher exposure to accident risk.
“Age, too, also has a bearing, with drivers aged 40 plus seeing the biggest premium increases. This is probably due to older drivers being on the roads more which increases their risk factors.
“The good news is that wherever you live and whatever your age group, it’s quick and easy to save money on your car insurance.”