The cost of car insurance premiums started to creep up in the last quarter of 2020, after prices fell throughout the rest of the year, new research has revealed.
Between October and December, average premiums for fully comprehensive cover went up by 3.6% to £490 a year, but it is still £13 lower than it was at the end of 2019.
Rising prices could reflect the increased traffic (and potential accidents) towards the end of the year as lockdown measures were relaxed, but the new lockdown could see this change.
Car insurance priciest for young men
If you are a man aged between 20 and 24, you will pay the most for fully comprehensive car insurance – typically £1,143 a year. This compares with £795 for women in the same age bracket and an average of £981 across men and women. Meanwhile, drivers aged between 17 and 19 have seen premiums fall the most year on year to £802 – down from £995.
In contrast, it costs just £274 a year, on average, for a driver aged 65 or over to insure their car, according to data from MoneySuperMarket.
For average prices in your age group, see below.
Age group Premium price average
Do you live in one of the priciest areas for car cover?
London was the most expensive area in the UK to insure a car, with drivers in East London paying the most at £955 a year. This was followed by Ilford and Barking, at £877 and north-west London at £872. Southall and Uxbridge in west London along with north London were also high at £833 and £832 respectively. South-east London was a little less at £755.
Three northern towns fared badly, with drivers averaging £776 for comprehensive cover in Bradford, £765 in Manchester and £748 in Oldham. Drivers in Birmingham also paid over the odds, at £753 a year.
Where can you live for cheaper car cover?
Average car insurance premiums in quieter spots outside the largest towns was a fraction of the price. Drivers in Kirkwall in the Orkney Isles paid £269 a year for car insurance, followed by drivers in Dorchester at £277 and Exeter at £278.
Other towns in Cornwall and fared well, with drivers living in Truro, Torquay and Taunton paying £283, £298 and £300 a year respectively.
Scotland’s Dumfries and Galloway and Inverness were relatively cheap at £284 and £300 respectively, while drivers in Shrewsbury in Shropshire also paid £300.
How can I cut my car premiums?
- Make fewer journeys – the more you drive, the pricier your insurance will be.
- Buy a vehicle that is in a cheap insurance group.
- Increase your voluntary excess – it will mean a cheaper upfront payment, but you will pay more if you make a claim
- Build up your No Claims Bonus.
- If you can afford to pay upfront, it will work out cheaper than a monthly direct debit.
- If you are a careful driver, consider buying black box insurance as it can be cheaper.
- If are not restricted to a particular area when renting, factor in insurance costs.
Always shop around for a better deal when you get your insurance renewal notice, we compare over 100 car insurance providers.
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