The cost of car insurance has rocketed up by 5% every year, and with the average currently standing at £789, there’s no time like the present to start shopping around for a better deal. The cost of insurance cover went up in July by 3% – equivalent to a rise of £27. And it’s not the first time insurance prices have risen, with statistics showing that it’s just one in a long line of increases. Insurance is now 5% higher than it was a year ago, so with this in mind, it’s worth taking the steps to ensure you’re getting the best value cover.
Men are Paying More
Although most drivers are feeling the pinch when it comes to car insurance, statistics show that some are affected more than others. Men, in particular, tend to spend more than women, with the gap in price at an average of £86.
While the EU Gender Directive means that insurers aren’t allowed to calculate prices for drivers due to their sex, there are other risk factors leading to this premium increase. On average, for example, men tend to drive pricier cars with larger engines, making for higher value claims. And according to data, men tend to have more motoring convictions compared to women.
London is Hit the Hardest
Although drivers in the majority of the UK saw their premiums go up over the past few months, Inner London was affected the greatest, with drivers seeing their average car insurance cost rise by an average of £61, taking the overall average premium in the area to over £1,200. And, North West drivers in Merseyside and Manchester saw their premiums rise by 4% compared to last year, with an average premium now standing at over £1,000 for the first time in 18 months.
Prices are On The Up
It seems that car insurance prices are really starting to gather speed in an upward direction. In fact, the recent price hikes are some of the biggest that we’ve seen in the past one and a half years. As a result, comparison site experts advise everybody to make sure that they are shopping around for the best deal when it comes to their car insurance, whether they’re a brand-new driver or have decades behind the wheel under their belt.
Some Good News…
Despite car insurance being on the rise, many drivers are breathing a collective sigh of relief thanks to recent drops in the cost of fuel. Whilst the cost of diesel and petrol saw some significant rises over the course of last year, the prices have been dropping significantly since October of 2018. Petrol especially has become much cheaper, and whilst diesel may not have seen as significant a price drop, it’s certainly going in the same downwards direction.
When it comes to saving money on your car insurance, shopping around is crucial, with a huge percentage of drivers who renew with their current provider spending more than they need. Have you noticed a price difference in your car insurance this year?