Car Insurance Prices Rise by £68 on Average, Despite Recent Decrease

Are you tired of seeing your car insurance premiums rise year after year? Well, you’re not alone. New figures released by a car insurance comparison site show that prices have increased by an average of £68 for drivers in the region, bringing the average cost to £653. Despite a recent decrease of £47 in the last three months, costs are still higher than they were last year.

The most expensive area for car insurance is Cardiff, where motorists face an average price tag of £728 after a 12 per cent increase in the last year. Newport saw even more dramatic fluctuations, with an average annual increase of 14 per cent, bringing the average price to £697.

But it’s not all bad news. Across the UK, insurance costs have actually decreased by £59 over the quarter, marking the end of the record highs seen last year. However, the UK’s average premium still stands at £882 after a £106 increase within 12 months.

One interesting finding from the report is that many motorists are experiencing higher costs upon renewal of their policies. A survey of 2,000 UK drivers found that 68 per cent reported a rise in their renewal quotes, with an average increase of £92. However, by using a comparison site and switching providers, 37 per cent of customers managed to save an average of £82.

The study also revealed that UK drivers are unlikely to see their car insurance costs drop below £1,000 until the age of 38. Younger drivers, especially 18-year-olds, are hit the hardest, paying an average of £2,960, a 23 per cent increase from the previous year.

So, what can you do to save on your car insurance? Louise Thomas, a car insurance expert at Confused.com, suggests using a price comparison site to switch providers and potentially save big. In fact, data shows that those who shop around with Confused.com could save as much as £539.

Ms Thomas also recommends being accurate with your mileage, considering a higher voluntary excess if affordable, and paying annually rather than monthly to save on interest charges. So, don’t settle for high insurance costs – take control of your finances and start saving today!