Car insurance premiums on the rise

Published 06 January 2021

Car insurance premiums began to rise in the final quarter of 2020, after a year of falling prices - according to new research from price comparison website, MoneySuperMarket.

Prices had fallen gradually over 2020 – partly as a result of people driving less due to lockdown restrictions. However, average premiums jumped from £473 in Q3 to £490.

Though quarterly prices increased, year on year premiums, showed a slight decrease - with the average price of a fully comprehensive policy sitting at £590 in Q4 2019.

The research also explored how location impacts a driver’s premium price. Drivers in East London pay the most (£955), almost twice the national average (£490) and £265 more than the average premium paid by Greater London drivers as a whole (£690). Car owners in Kirkwall in the Orkney Islands have the cheapest premiums in the country (£269).

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Female drivers over the age of 65 pay the least for their car insurance at £251, which is £239 less than the national average of £490. Men aged 20-24 pay the most (£1143), £348 more than females of the same age (£795).

Premiums have fallen the most year on year for drivers aged between 17 and 19: the average price is down by 19 per cent in the past 12 months now costing an average of £802 – down from £995.

Kate Devine, car insurance spokesperson for MoneySuperMarket, commented: "With new lockdown measures now in place following the Prime Minister’s announcement on Monday, a major fall in traffic could lead to lower prices – at least in the very short term."

Top 10 most expensive locations for car insurance premiums:

Position

Location

Q4 2020 cost

1

East London

£955

2

Ilford and Barking

£877

3

North West London 

£872

4

Southall and Uxbridge

£833

5

North London

£832

6

Bradford

£776

7

Manchester

£765

8

South East London

£755

9

Birmingham

£753

10

Oldham

£748

The ten cheapest locations for car insurance premiums

Position

Location

Q4 2020 Cost

1

Kirkwall

£269

2

Dorchester

£277

3

Exeter

£278

4

Truro

£283

5

Dumfries and Galloway

£284

6

Llandrindod Wells

£292

7

Torquay

£298

8

Shrewsbury

£300

9

Taunton

£300

10

Inverness

£305

Comments

aethelwulf    on 7 January 2021

Well , in Dcember 2020 I paid £165 for my Piccanto 1 a 2010 model. I have it at 6000 miles per year fully comp self and wife. Full NCB £100 excess. It was a reduction on the 2019 premium so I am not complaining. It was through Halifax as per the previous two years. Include legal cover nothing else though as breakdown through Nationwide bank. I live in village 5 miles North West of Leicester.and am retired 73 years old.

Robert McAuley    on 8 January 2021

No mention of Northern Ireland and I'd imagine that they pay lower premiums??????

   on 8 January 2021

Hello all at HJ.
You have enormous clout in the car sales world and are very well respected for being firm but fair, so why don't you protest any car insurance increases on behalf of your readers. The majority of motorists have been forced of the road by Covid 19 regulations and restrictions so to put prices up is just profiteering and you should say.
Come on HJ, stick up for us!
Joe Taylor. S603JP 10

Archibald Thornton    on 11 January 2021

We live in Scotland and i live in Glasgow and my premium is £ 374 pounds for my Ford 1600 Automatic Powertrain gear box . This covers protected no claims bonus and is Fully Comp . A. Thornton .

hissingsid    6 days ago

I am 73 with a clean licence and maximum protected NCB, living in rural Somerset.
My Mazda CX-3 bought new in 2016 is insured with LV but through Mazda, to ensure that if the worst happens I only have Mazda to deal with.
Every year the renewal premium has fallen, and if it increases in 2021 when most people are under virtual house arrest, I will want to know the reason why.

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