Car insurance costs have risen by three per cent in the final quarter of 2024, according to new data, piling more misery onto drivers.
The average cost of an annual motor insurance policy has increased from £437 to £450 in just three months.
Despite this recent rise, the new report shows that premiums remain three per cent lower than during the same period in 2023.
The findings come as drivers continue to grapple with the ongoing cost of living crisis affecting household finances across the UK.
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Car insurance prices have increased again in a further blow to motorists
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Location plays a significant role in determining insurance costs, with dramatic regional variations across the UK.
Drivers in Greater London face the steepest premiums, paying an average of £642 for their car insurance.
In stark contrast, motorists in Wales enjoy considerably lower rates, with a median cost of just £365, representing a substantial 43 per cent difference between the two regions.
Annual mileage is another key factor affecting insurance premiums, the Go.Compare data reveals.
Drivers covering up to 6,000 miles annually pay an average of £444 for their car insurance, while those who drive up to 10,000 miles face average premiums of £488.
Tom Banks, spokesperson for Go.Compare Car insurance, commented on the findings: “The cost of car insurance rising once again really isn’t going to be welcome news for drivers, especially as they continue to feel the effects of the cost of living crisis on their household finances.”
He offered several money-saving tips for motorists, including purchasing premiums 26 days before renewal, being accurate with mileage estimates, opting for annual rather than monthly payments, and carefully selecting job descriptions.
Banks added: “If there are multiple titles you can use to describe your profession accurately, try them all out.”
Surprisingly, third party only (TPO) insurance is the most expensive option, with an average cost of £588, despite offering the lowest level of cover.
With just £10 separating basic and comprehensive coverage, drivers should carefully weigh their options, Banks noted.
Experts recommend shopping around and using comparison sites to find the best deals.
Being strategic about when and how you purchase insurance could lead to substantial savings during these financially challenging times.
LATEST DEVELOPMENTS:
Drivers in Greater London continue to have the most expensive car insurance prices
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Regions by average cost of motor insurance
Greater London – £642
West Midlands – £497
North West – £486
Northern Ireland – £486
South East – £442
North East – £423
East Midlands – £421
Scotland – £403
South West – £371
Wales – £365
