A new report by Go.Compare car insurance has revealed that the average cost of car insurance is now £456, up 2% from the previous quarter (£447).
The comparison website’s latest price index has revealed that compared to the same period in 2023, the average cost of car insurance is up 23%, from £371 to £456.
The report also showed that Greater London continues to be the most expensive place to insure your car with premiums costing an average of £662. That is 80% more than the average cost of a premium in Wales (£366), where drivers pay the lowest car insurance premiums in the UK.
Third-party fire and theft (TPFT) insurance is the cheapest type of car insurance costing an average of £449 annually, while the most basic level of cover, third party only, costs 33% more at £599 – also making it the most expensive car insurance cover. Third party only provides cover for damage you cause to someone else’s vehicle, while TPFT provides the same cover as well as protection for your car against fire and theft, despite costing less.
While third-party fire and theft is the cheapest level of cover, the average cost for a comprehensive policy was a mere £6 more at £455, and could offer you more protection.
Tom Banks, Go.Compare’s car insurance spokesperson said “This quarter’s price increase may not be as dramatic as the rise we saw at the end of last year, but it will still be a concern for many motorists.
“Knowing the factors that can influence the cost of your car insurance premium and seeing if there are any small changes you can make, could save you a few pounds here and there – but it is imperative that you are still honest and accurate when getting a quote.
“When offering you quotes, insurers take a whole host of information into account to assess your level of risk and work out the cost of your premium. Some of these things might seem obvious, such as your annual mileage and your age, but insurers also consider where you live and the make and model of your car.
“Our report shows that those who drive 6,000 miles a year saw average premiums of £447, £54 less than those who drive 10,000 miles a year (£501). Insurers deem those who are on the road more, as more likely to have an accident. That’s why it’s important to be as accurate as you can when getting a car insurance quote, from declarations such as where the car is parked overnight to how much you estimate you’ll drive over a year.”
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.