Average Car Insurance Price Now £786

The latest car insurance price index data and how average prices are still going up.

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Car Insurance Price Index

The latest car insurance price index research from Consumer Intelligence shows that prices are continuing to rise and are now 7.8% higher than they were at the start of the year and 20% higher than they were 9 years ago.

Price walking ban

Price walking is the name given to the practice where insurers were able to charge existing, loyal customers, more for their car insurance than they were offering new policyholders. This was outlawed at the start of the year.

However, prices have only increased by 3.3% in the last 3 months which may give some hope that the initial increase we saw after the so called ‘price walking’ ban at the beginning of the year, has now slowed somewhat.

The report indicates that the trajectory for prices seems uncertain and unpredictable as underwriters figure out their numbers following this ban.

Car insurance price differences by age

It is older drivers over the age of 50 that are getting hit the hardest with an increase of nearly 10% over the past year. Surprisingly, younger drivers under the age of 25, saw their premiums fall 3.2% over the last year.

  • Average premium for drivers under 25 is £1,669
  • Average premium for drivers 25-49 is £592
  • Average premium for drivers aged 50+ is £414

Telematics (Black Box) prices

Telematics products track how the car is driven which can result in how your premium is calculated. The data collected by telematics products includes:

  • Exactly where you drive based on GPS information
  • The dates and the times of day you have been driving
  • How fast you drive and how quickly you accelerate
  • How well you use your brakes
  • How well you take corners
  • How many miles you drive on motorways and other road types
  • The overall mileage and how many individual journeys you make
  • Your overall driving style used to calculate your driving score

The report from Consumer Intelligence highlights a number of key areas for telematics products:

  • Telematics account for 27% of the five cheapest quotes, down from 30% at the start of the year
  • Telematics now account for 64% of policies for drivers under 25
  • Telematics now account for 21% of policies for drivers aged 25-49
  • Telematics now account for 8% of policies for drivers over 50

Car insurance prices by area

Where we you live can dramatically affect the cost of your car insurance with London having the highest prices and the South West of the UK having the cheapest prices. Scottish drivers have seen the largest percentage increase in the last year and are now paying 8.4% more than 12 months ago.

Car Insurance Cost by Area

Source: Consumer Intelligence
Area Average Cost
London £1,296
West Midlands £892
North West £858
Yorkshire & The Humber £811
South East £783
North East £736
East of England £658
Wales £611
Scotland £580
South West £482

What can I do to reduce cost?

By far the best way to reduce your cost is to shop around.

Try at least two or three comparison sites as each one can have different rates and different insurers included. Some sites may have negotiated special rates or schemes just for themselves.

Also look at alternative options such as monthly subscription insurance where you pay month to month and cancel without cost when you want to. Remember that the law states you must be insured at all times unless you complete a SORN from the DVLA.

Pay per mile is also becoming a very popular option with people driving less mileage now that they work from home and do less or no commuting. The pay per mile product means you pay a flat, low annual fee and then your pay for each mile your drive.

We have included all the above options and more in our recommended car insurance list. Get quotes from as many or all the companies listed to ensure you are covering as much of the market as possible.

Car insurance too high? Try this:

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