The cost of car insurance in London has increased in the past 12 months, new data reveals, proving its more important than ever for drivers to shop around for the best deal.
Motorists in London can now expect to pay as much as £1,272 for their car insurance, on average. That’s according to the latest Confused.com car insurance price index, powered by Willis Towers Watson. Based on more than six million quotes every quarter, it’s the most comprehensive car insurance price index in the UK.
Drivers in Inner London have been hit the hardest by the price increases, as the average cost of car insurance in the area has accelerated by £110 (10%) in one year. This means motorists in this area can now expect to pay £1,272 for their car insurance, on average. Drivers living in North London have seen the sharpest increase in the region, as prices shot up by £149(13%) over the last 12 months. Although, despite these increases, this isn’t the most expensive area in Inner London. In fact, drivers in East London are forking out the most, with car insurance costing £1,465, on average.
Meanwhile, an annual increase of £63 (7%) to prices in Outer London mean that drivers are paying £1,022, on average. Drivers in Uxbridge are paying record prices, as the average car insurance premium costs £1,295 for drivers that live there. Yet, motorists in Sutton have been hit hardest by price increases over the last 12 months, as premiums rise by £100 (13%).
While this may not be the news that drivers want to hear at this time, further research offers some relief, revealing the potential savings to be made from shopping around and avoiding automatic renewals. The research, conducted by Confused.com(1), found that nearly half (46%) of UK motorists saw their car insurance price increase. Of those who saw their insurance price increase, more than a third (37%) opted to use a price comparison website and switch to a better deal, saving £59, on average. Although, some drivers saw even bigger savings, with one in six (17%) finding a policy that was more than £100 cheaper than their original price.
Following the report of these increases, Louise O’Shea, CEO at Confused.com, highlights the importance of shopping around. It’s important, now more so than ever, for drivers to take a closer look at the price they’re paying for insurance and see if there’s a better deal out there for them. And while automatically renewing may seem like the stress-free thing to do in the short-term, it could end up costing drivers more in the long run. Those taking this option could be signing up to an annual policy that is potentially hundreds of pounds more expensive than other options out there.
Therefore, it’s crucial for drivers to be taking the time to check their renewal document and compare with the previous year’s price. And even if prices are similar, or have dropped slightly, then there is still the opportunity to save money. To further incentivise drivers to seek out a better deal, Confused.com is giving them the chance to save even more by guaranteeing to beat their car insurance renewal price, or give them the difference, plus £20(3).These price increases are reflected across the rest of the country, with the average price of car insurance accelerating by £47 (6%) in the past year, to now stand at £809, on average.. In fact, over the past 12 months, car insurance prices have increased at the fastest rate in more than two years. Although, in the past three months alone (January – March 2020), prices dipped by £6 (1%), on average.
However, despite a slight drop in price, the cost of car insurance is still at one of the highest points in more than two years. But what can drivers do to bring their price down? It can be easy for drivers to feel overwhelmed by the news of increasing car insurance costs and thinking there isn’t anything they can do to help bring them down. However, this isn’t the case. According to Confused.com’s expert guide, there several things drivers can do to reduce the price they pay for car insurance.