The average cost of car insurance is up 23% in a year, rising from £371 to £456, the Go.Compare price index reveals.
The cost of car insurance is up 2% from the previous quarter, where it stood at £447.
However, for drivers in Greater London, they’re paying the most, with average premiums coming in at £662.
According to the Go.Compare car insurance price index, this is 80% more expensive than average premiums in Wales (£366), where drivers pay the lowest amount for cover in the UK.
Drivers opting for the most basic level of cover, third-party-only insurance, also pay more, with this cover costing £599.
In fact, it’s 33% dearer than third-party fire and theft (TPFT) insurance, which is the cheapest at an average of £449 annually.
Third-party-only insurance covers you if you damage someone else’s vehicle, while TPFT provides the same cover but also protects your car against fire and theft despite it costing less.
Meanwhile, a comprehensive policy was just £6 more at £455, and could offer you more protection.
Tom Banks, Go.Compare’s car insurance spokesperson, said: “This quarter’s price increase may not be as dramatic as the rise we saw at the end of last year, but it will still be a concern for many motorists.
“Knowing the factors that can influence the cost of your car insurance premium and seeing if there are any small changes you can make could save you a few pounds here and there – but it is imperative that you are still honest and accurate when getting a quote.”
Car insurance tips to pay less
Banks explained that providers take your annual mileage, age, where you live and the make and model of your car into consideration when providing a quote for cover.
For example, those who drive 6,000 miles per year saw average premiums of £447, £54 less than those who drive 10,000 miles per year (£501).
“Insurers deem those who are on the road more as more likely to have an accident. That’s why it’s important to be as accurate as you can when getting a car insurance quote, from declarations such as where the car is parked overnight to how much you estimate you’ll drive over a year,” Banks added.
He said that while there are some things that you can’t change to save money on your car insurance, like the make and model of your car and where you live, changing the way you describe your occupation could save you money.
“A ‘bricklayer’ might pay a different price to a ‘builder’ or a ‘teacher’ might be offered a different quote to an ‘educator’. Make sure you are being honest about your occupation when getting a quote though, as being dishonest could invalidate your policy,” he said.
Banks added: “We recently revealed that buying your car insurance 26 days before your renewal is due is one way to save, but our research shows that 98% of people miss this window of opportunity and could end up paying 55% more as a result.
“Paying for your premium annually instead of monthly is another way you could lower the cost of your premium – when you pay monthly, insurers view it as a loan and therefore charge interest, which drives the cost up.
“And we know we bang on about it a lot, but not auto-renewing and comparing insurance policies every year is a sure-fire way to make sure that you aren’t paying over the odds on your car insurance every year. So log on and explore the market – you could make some major savings.”
