Motorists in Oldham see biggest rise to insurance premiums in two years.

The cost of car insurance in Manchester is at a two-year high, edging closer towards the most expensive on record, according to new data published today.

Drivers in the region can now expect to pay £1,053 for their car insurance, on average, following increases over the past year.

That’s according to Confused.com’s latest car insurance price index, powered by Willis Towers Watson. Based on more than six million quotes every quarter, it’s the most comprehensive car insurance price index in the UK.

In particular, motorists in Oldham saw the highest increase to their premiums, with prices rising by £114 (10%) over the past 12 months to £1,217, on average.

This makes it the most expensive region outside of London for car insurance, with drivers paying at least £42 more than anywhere else in the UK.

And if prices continue to rise at the current rate, drivers may be paying a new record by the end of the year

In fact, drivers in Oldham are paying an eye-watering £1,217 in comparison, on average.

Drivers in Manchester and Merseyside face the highest car insurance costs in the UK, outside of London, paying £1,053, on average.

These increases are mirrored across the UK, as the average price of car insurance has now reached £815 following a £41 (5%) increase over 12 months – the steepest rise in prices in two years.

The data also shows the cost of car insurance has climbed by £32 (4%) in three months (Q4 2019), which is also the biggest quarterly increase in more than two years.

Following these recent increases, the average price of car insurance is now nearing the 2011 peak of £858, with UK motorists today paying just £43 (5%) less than this record price.

Looking back at the past 12 months, 2019 proved to be a volatile year, with car insurance prices fluctuating before delivering a powerful blow to drivers to close out the year.

Now, drivers across the UK will no doubt feel deflated by the news of increases to their car insurance prices. And some will feel the pinch more so than others.

This past quarter (Q4 2019) saw prices ramp up for female UK drivers in particular, who are now paying £48 (7%) more than 12 months ago.

This means they can now expect to pay £767 for their car insurance, on average. However, prices remain higher for men, who pay £854 in comparison, following a £37 (5%) increase year-on-year.

This brings the gap between the two to £87, on average(2).

But it isn’t just women who are bearing the brunt of the increases. Some younger drivers have been hit with price hikes of more than £100.

In particular, the cost of car insurance for 18-year-olds in the UK accelerated by £147 (7%) in 12 months to £2,130, on average.

This is the most expensive price paid by any age group. Meanwhile, prices for 19-year-olds and 17-year-olds also increased by £137 (7%), and £116 (6%) respectively.

This means 19-year-olds now pay £1,990, on average, while 17-year-olds follow shortly behind, with the average premium now £1,971.

However, the data shows that prices don’t always decrease with age, or experience. In fact, all drivers in their 20s faced among the steepest increases across all age groups. In particular, prices for 24-year-olds soared by £101 (9%) over the past 12 months, with drivers now paying £1,259, on average.

In comparison, the smallest increase for drivers in this age group was £51 (3%) for 21-year-olds, which is still significantly higher than the UK average.

It seems these increases have no age barrier, as drivers later in life are still being hit price hikes. Last quarter, drivers aged 38 and 69 paid the most expensive price on record for these age groups.

A £43 (7%) annual increase for 38-year-olds meant they are now paying £672, on average, while 69-year-olds saw their costs climb by £38 (9%) to £481, on average.

These recent increases have left drivers scratching their heads, as further research conducted by Confused.com(1) found more than a quarter (27%) of UK drivers are confused about why the cost of their insurance increases each year.

Confused.com, is urging drivers to shop around, even if their renewal price hasn’t increased significantly, as there’s still the opportunity to make substantial savings.

To further incentivise drivers to seek out a better deal, Confused.com is giving them the chance to save even more by guaranteeing to beat their car insurance renewal price, or give them the difference, plus £20(3)

Amanda Stretton, Motoring Editor at Confused.com comments: “It’s January, the month to save money and re-evaluate our spending.

"But the bad news is car insurance costs in Manchester and Merseyside are increasing. And, as drivers, this is something we can’t avoid.

"If costs continue to accelerate at this pace, we could be paying record prices by the end of the year.

“Shopping around is key to saving on car insurance. And even if your renewal price is cheaper, or the same, it’s likely there will be another insurer out there willing to offer a better price."

1.       Research obtained through a nationally representative survey of 2,000 UK adults who drive, carried out by One Poll on behalf of Confused.com. This survey ran between 8th January and 10th January 2020.

2.       While the EU gender directive prohibits insurers from assessing a driver based on their sex, there are other risk factors which cause men to have higher premiums. For example, men tend to drive more expensive cars with larger engines and loaded with new technology, on average, which makes for higher-value claims. They also tend to have significantly more motoring convictions than women.

 

 

 

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