The post-Christmas pinch is made worse for motorists in Inner London, as new data reveals the cost of car insurance in the region has increased over the past three months.
The cost of car insurance in Inner London increased by +1% – equivalent to £12 in three months, with motorists in the region now paying £1,169, on average, making it the most expensive region in the UK for car insurance. That’s according to the most comprehensive car insurance price index in the UK based on more than six million quotes a quarter from Confused.com and powered by Willis Towers Watson.
While this increase may seem small, prices appear to be accelerating at a much faster rate compared to three months ago, when the cost of car insurance increased by +£3 (+0%) in comparison.
However, the current price of insurance in Inner London is still -£114 (-9%) cheaper than 12 months ago, despite the increases seen this quarter (Q4 2018).
To help motorists in the region see how these increases have impacted their own premiums, Confused.com has created a car insurance calculator. The tool allows users to input their region, age and gender to find out the average cost of premiums for their demographic, compared to 12 months ago.
Motorists in the City of London will be feeling the pinch of these increases in particular, as it is revealed to be the most expensive area in Inner London for car insurance. Motorists in the region pay £1,439, following a +£214 (+17%) increase over the quarter, on average, making it the most expensive postcode area for car insurance. This is also the highest quarterly increase seen by all UK postcode areas.
These increases are reflective of the direction car insurance prices are heading across the majority of the UK. According to the data, the cost of car insurance in the UK rose +2% over the past three months – equivalent to +£14 – to £774, on average.
This is the second consecutive rise since a brief period of softening prices which began in Q3 2017. And prices are increasing at a faster rate than three months ago, when they crept up by just +1% (+£8) over the quarter (Q3 2018) in comparison. While car insurance is still -6% (-£53) cheaper than 12 months ago (Q4 2017), with the speed of price-rises accelerating, it could be that the worst is yet to come.
It seems motorists who stay with the same insurer are already starting to see these increases reflected in their renewal price. A nationally representative survey of UK drivers found more than half (57%) of motorists who renewed their car insurance in the last quarter (October – December 2018) saw their premium go up by £48 when they opened their renewal notice(1), on average, as insurers fail to reward loyal customers. However, worryingly, more than half (56%) of drivers who renewed their insurance during these months stayed with the same insurer, suggesting they did not seek a better deal elsewhere.