Car insurance prices have risen in the UK for the first time in over a year, reveals new data.
Prices are seemingly creeping up again after UK motorists enjoying a little respite over the past 12 months as costs appeared to be heading the other way.
Now, average prices have increased to £760 in Britain over the past quarter which means that motorists are paying around one per cent more, which equates to around £8.
According to the comprehensive car insurance price index based on more than six million quotes a quarter from Confused.com and powered by Willis Towers Watson, it could be a sign of things to come.
In fact, the last time an incremental increase occurred, prices quickly began to climb.
The price of premiums crept up from £591 in Q1 2015 to £600 (+£9) the following quarter, with prices going on to increase +19% (+£115) over the following 12 months (Q2 2016 – £715).
In addition to this, half (54 per cent) of motorists who renewed their car insurance between July and September this year (2018) saw their premium increase by at least £50.
However, 60 per cent of motorists that renewed their premium stayed with the same insurer instead of shopping around for a better deal
Car insurance prices have increased for the first time in the UK for 12 months
On average drivers are paying £8 more than they were a year ago
There are a number of ways drivers can save money off the cost of their premium.
One of those is by choosing the right time to renew. According to the research, motorists are better off shopping around online at 8am received the cheapest price on average and could save up to £783 compared to those browsing in the early hours of the morning (2am), when car insurance is at its most expensive
On average, however, prices are still cheaper than they were this time a year ago by around £78.
This could be due to changes in the Ogden Rate, which is used to calculate injury claims in Britain, reducing it to 0.75 per cent.
Male drivers are still being hit the hardest by car insurance paying on average £94 more than female drivers, despite an EU directive dictating gender cannot play a fact in determining premium costs.
Young drivers are also feeling the squeeze more than any other group, in particular, 17-year-olds saw the biggest monetary change in the cost of their car insurance, with the average price accelerating by +£64 (3 per cent) in just three months.
Louise O’Shea, CEO at Confused.com comments: “Over a year ago we saw car insurance prices start to decrease, but now it seems prices may be changing direction and starting to creep up once again.
“And there is no telling how long it will be before they start to really accelerate.
Male drivers pay on average £94 more than women
“Clearly there are still many cases of motorists unnecessarily paying more for their car insurance when it comes to renewing.
“I personally had to renew my car insurance this month, and while I was quoted a cheaper price than last year by my existing insurer, I managed to save an extra 40% by shopping on Confused.com – £300 cheaper than what my insurer was quoting.
“And this is why it is so important for drivers to be savvy and shop around as there could be a better price out there for them.
“And we are so certain of this at Confused.com that we are offering to beat drivers’ renewal prices, or give them the difference, plus £20(5).
“Please don’t pay more than you have to – take a few minutes to check your renewal letter and get a cheaper price from Confused.com.”
It’s not just insurance price that is driving the cost of motoring up either.
Fuel prices have soared over the past year with drivers now paying 130.8p for petrol and 134.8p for diesel, on average.
This means that the average driver of a medium-sized car is now paying £75 for a full tank of petrol and £77 to fill up with diesel.