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Car insurance prices rise year-on-year 

Car insurance prices increased by 6% in the first quarter of 2020, according to the latest car insurance price index issued by Confused.

Its latest findings found that motorists were paying £809 on average for an annual car insurance policy, £47 higher than the year prior. 

Nonetheless, there was a “slight, recent” dip in prices across the past three months, with prices £6 lower on average. 

Confused.com is now urging motorists to “seize the initiative to shop around and look for a better deal” as “shopping around can bring prices down”.  

Confused CEO, Louise O’Shea, said: “Even if your renewal price is cheaper, or the same, it’s likely there will be another insurer out there willing to offer a better price.”

The group’s latest research found that 46% of UK motorists saw their car insurance price increase in the period. Of those who did, 37% opted to shop around using a comparison site and switch to a better deal, saving £59 on average. 

Confused also noted that 17% of respondents found a policy that was more than £100 cheaper than their original price after shopping around. 

Nonetheless, the research found that younger drivers faced the “steepest price hike of all” in the period, with the average cost of car insurance for 17-year-olds rising £121 in 12 months and £55 in the past three months alone. 

Meanwhile, drivers aged 36 also saw a “steep increase”, with the average cost of their insurance rising  £61 year-on-year to £674.

O’She said: “The fact that car insurance costs have increased is not the news we need especially right now. 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.” 

She added: “At Confused. com we’re so certain drivers will be able to find a better price than their current insurer that we’re offering to beat their renewal quote or give them the difference, plus £20. 

“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.”

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