Car insurance premiums climb through millions neglecting to shop around
Average cost of motor insurance
Millions of drivers could be affected by overpaying for their insurance premiums through a minor error.
According to the annual drivers’ report from insurance comparison website CompareTheMarket.com, the average cost for the cheapest motor insurance has risen from £475 in September 2012 to £650 in September 2018, an increase of £175. The average premiums have risen from £550 six years ago to £760 — a jump of £210.
One of the reasons why people are overpaying for their premiums is the lack of shopping around — one of the easiest ways to cut down on an insurance quote. Dan Hutson, head of motor insurance at CompareTheMarket, said: “The only way to mitigate these rises and encourage competition amongst providers is for consumers to shop around every year.”
Younger drivers are traditionally offered particularly high quotes by insurers. According to the Young Drivers index provided the average 17 to 24-year-old now pays around £1,324 for their insurance.
Cars in a low insurance group have long been the best way to get a cheap premium. CompareTheMarket recommends models such as the Dacia Sandero with an average quote of £882, as well as the Fiat 500 at around £898 a year to insure.
Hutson added: “The Dacia Sandero and the Seat Mii both cost under £900 to insure per year and cost £3,225 or less to buy. We would remind all would be drivers and parents out there to do a bit of research on the cost of insurance prior to buying any vehicle.”
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