The average price of car insurance has increased by nearly £50 in 12 months, claims new data, meaning it’s more important than ever for drivers to shop around and find the best deal.
According to the latest Confused.com car insurance price index, motorists can now expect to pay an average of £809 for their motor insurance, following a £47 (6%) increase in the past year.
The research found that nearly half (46%) UK motorists saw their policy price increase. Of these drivers, more than a third (37%) shopped around and switched to a better deal, saving £59 on average.
However, some reported even greater savings, with one in six (17%) finding a deal that was £100 cheaper than their original price.
While it’s clear shopping around can save drivers money, adding extra security devices or opting for black box insurance could also result in lower car insurance policies.
Drivers can also save money by paying annually. While paying monthly is more convenient, it’s like taking out a small loan, which will usually carry interest on top of the initial price. And according to Confused.com data this can cost as much as 16% more than the annual price
“The fact that car insurance costs have increased is not the news we need especially right now,” said Louise O’Shea of Confused.com. “Year on year prices are up, but over the past few months they haven’t changed that much.
“However, as a result of the lockdown the majority of people are using their cars less, it is therefore likely that we will see some change to prices in the coming months as insurers adjust to reflect this.
“Please don’t pay more than you have to – take a few minutes to check your renewal letter and get a cheaper price because now, more than ever, it’s so important to shop around.”