The cost of car insurance right now in the UK is enough to make you cry. Even Martin Lewis is losing his mind with the average premium now costing more than £1,000 for annual coverage.
The Money Saving Expert has issued some welcome advice on how you can bring your car insurance cost down. He's also issued some important advice on what not to do, with one method used by some young drivers highly illegal.
Speaking out on the situation facing youngsters, Lewis said: "In October, I wrote in this email that, hideously, average car insurance prices had risen to a massive, unthinkable £924/year. Now... October is looking like the good old days.
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"Exact figures vary, but two comparison sites say that by the end of 2023 quoted premiums were up over 50%, and two say that average prices are now at or over £1,000/year. The insurers' trade body, the ABI [Association of British Insurers], which looks at average premiums paid, says rises on those are 34%."
One thing that can impact how much your insurance costs is what kind of licence you have - and it is not good news for those who can only get behind the wheel of an automatic. But another thing that may impact how much your car insurance sets you back is where in the country you live. And it doesn't make good reading for three areas.
Fresh research from Quotezone.co.uk has been conducted because of how unaffordable it has become for some as the cost of living crisis continues to linger.
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ABI research says the cost crisis has seen insurance premiums for young people spike by 25% year-on-year, with a quarter of new drivers already considering stopping driving altogether while it remains so expensive.
The price comparison website looked at insurance premiums for 18 to 24-year-old drivers in different regions across the United Kingdom, ranking them from most to least expensive.
The research from Quotezone.co.uk revealed there are massive differences in costs depending on location. We're talking £1,500 a year, which is eye-watering.
Their research found that the worst place to insure your car if you're a young driver is in London, with the average premium being £2,811.38.
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This was followed by the West Midlands, home to Birmingham, Wolverhampton, and Walsall, where it sets motorists back £2,392.30.
And in Yorkshire, home to Leeds, Bradford, and Sheffield, we're talking £2,327.01 a year.
In staggering contrast, the average premium in Northern Ireland is £1,359.12. In South West England, it's £1,714.21.
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Quotezone.co.uk CEO and car insurance expert, Greg Wilson, said: “Young drivers normally have to pay more for their premiums as they have less experience – something insurance providers use to base their risk analysis on and determine costs. However, in recent years insurance costs have soared, leaving drivers considering if they can afford to drive at all.
“With cover for under 25-year-olds now approaching or exceeding £2,000 annually across the majority of UK regions, many young people are struggling to get behind the wheel, having to rely on strike prone public transport, after investing over £3000 on learning to drive and passing their tests.
“Hopefully our tips will help young drivers really start to look at their insurance policies and explore where they can find savings. Simple tweaks such as job title, the time you purchase and how you pay can all help cut costs.
“Insurance premiums may look to stabilise this year, but they are unlikely to come down, so drivers must hunt for better deals.”
Quotezone's top 10 tips on bringing your car insurance down:
Check your vehicle use
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Premium prices can vary depending on your use of the vehicle, it may work out cheaper if a driver is using it for ‘social only’ purposes rather than for ‘social and commuting’ so check how the options affect the price and consider if you can make any changes – just be careful all changes are accurate and reflect how you actually use the vehicle.
Check your job title
Job titles often affect the overall premium price, a tweak to your title could help you reduce your premium so try quoting with variations – just make sure the title is still accurate and describes the job you do, incorrect information could invalidate your insurance.
Review prices three weeks before renewal
Normally three weeks before your policy is due for renewal is when the prices are most competitive so be sure to keep an eye on your due date.
Opt for a smaller engine
Be sure to check your vehicle's engine size and horsepower, both can impact the cost of your premium. Also, some small engines are turbocharged and that can give them more power than might be expected, which will likely cause the premium to increase.
Park in a safe place
If possible, drivers should make use of their garages, driveways or carports for overnight parking. This can keep premium costs down because the safer you can keep your car, the cheaper it is to insure, likely a reduction of at least £140 if you can move your car from the roadside to a private driveway overnight.
Opt for telematics or a black box
A telematics policy, or black box insurance starts collecting driving data immediately which can help the insurer with their risk analysis. This way young drivers can demonstrate their safe driving and increase their chances of getting a competitive premium price.
Pay annually
If you can, it’s best to pay the annual premium all in one go to knock cash off your policy. Paying annually is normally cheaper because there is no interest to pay.
Add another driver
Adding a low-risk driver to your policy could bring down the premium costs especially if the other driver is experienced and has a clean record – just make sure the main driver is actually the one who drives the car the most or you could be charged with insurance fraud.
Improve vehicle security
Improving the vehicle’s security by fitting anti-theft devices or dash cams can help drivers get cheaper premiums. It’s worth getting the policy quotes first to consider whether the savings justify the extra cost of the devices.
Shop around
Never let a policy auto-renew, even if your provider was the cheapest option for you last year, it doesn’t mean they will be the cheapest this year, always shop around and compare products and don’t be afraid to switch providers, it’s an easy process that could lead to substantial savings. Comparison sites are ideal ways to find better quality products and more competitive prices.
Topics: Cost of Living, Money, Travel, UK News, Cars
Tom Earnshaw