Premiums up seven per cent year-on-year
Cost of cover has risen by 28 per cent in last two years
Drivers in Sutton saw biggest price increases, with Jersey seeing biggest decreases
Drivers urged to shop around to secure savings of up to £2841
With the new number plate launch and one of the peak periods for car insurance renewal just around the corner (1st March), MoneySuperMarket analysis can today reveal premiums are again on the rise, up seven per cent year-on-year2
MoneySuperMarket analysed 2.5 million customer quotes from 1st January – 31st January 2017 to identify overall and regional price fluctuations. In January 2017, the average premium was £535.85, seven per cent higher than the same period a year ago (£500.11 in January 2016) and a huge 28 per cent higher compared to the same period two years ago (£419.76 in January 2015).
When it comes to rises and falls in specific areas, the numbers are even more pronounced. Sutton’s footballers may be navigating their way through the FA Cup, but the area’s drivers are not faring as well, seeing the cost of cover rise by the highest amount year-on-year (19 per cent). They are closely followed by Blackburn drivers (18 per cent rise), Galashiels in the Scottish borders (17 per cent), Enfield (17 per cent) and Harrow (16 per cent) in North London.
Of the 124 postal areas analysed, only four saw premiums decrease year-on-year, including Jersey, which saw the cost of cover fall by 18 per cent to £261.50; Guernsey policy-holders also saw favourable price tumbles (15 per cent), as well as Lerwick in Scotland’s Shetland Islands (six per cent) and London’s EC postal area (two per cent).
East London remains the most expensive place to insure your car, with average annual premiums at £1,094.17, while Jersey is the cheapest, £832.67 less than East London at £261.50 on average.
Kevin Pratt, consumer affairs expert at MoneySuperMarket, said: “Anyone renewing their policy in the next few weeks should be acutely aware of how premiums have soared in the past couple of years, and should certainly not automatically renew with the same insurer without checking what else is available. If you stay with the same firm, it’s a pound to a penny your premium will be increased, but if you shop around you’re likely to find a company that will offer you a better price, simply to win your business.
“We actually saw premiums dip by eight per cent month-on-month from December 2016 to January 2017, but that should not be cause for complacency. Prices are up year-on-year, so for the vast bulk of drivers, renewal quotes will show a steep hike – well north of three times the rate of inflation. Premiums are likely to rise even further this year, following proposed changes to the way compensation is calculated for personal injuries following an accident, which would discount any savings achieved by the government’s proposed crackdown on whiplash fraud.”
|
