The average price of car insurance premiums have risen by around £47 per year to £809, according to research from Confused.com,
The firm’s Car Insurance Price Index revealed the six per cent increase, which is based on over six million insurance quotes being issued each quarter. It means the average premium is close to the 2011 high of £858 per year.
Louise O’Shea, CEO of Confused.com, 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. We are constantly monitoring the situation so that we can update our customers on any changes that happen.”
There’s little indication of how the coronavirus will affect the cost of premiums over the coming months. One industry insider said that while the number of insurance claims during the lockdown would be limited, this would normally mean premiums would reduce. But there’s no real understanding how the economic impact from the coronavirus will affect car insurance premiums moving forward.
The advice for motorists who are looking to save money on their insurance is to not let your policy auto-renew, as well as paying for the policy in full rather than on a monthly basis.
Louise O’Shea continued: “Automatically renewing with your insurer might seem like the easiest, stress-free option, but it could be costly. 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.”