Cost of car insurance accelerates once more with drivers in East London facing premiums that are DOUBLE the national average
- Car insurance premiums in the last three months of 2020 averaged at £490
- This is up £17 compared to the summer when fewer cars were on the road
- Motorists in East London were found to be paying the most for their insurance
Car insurance premiums started to rise towards the end of 2020, after four consecutive quarters of falls, new research has revealed.
The cost of an average fully comprehensive car insurance premium in the last three months of 2020 was £490, according to data from MoneySupermarket.
This was after a period of prices falling gradually over 2020, partly as a result of people driving less due to lockdown restrictions.
However, premiums were up 3.6 per cent by the end of December compared to £473 between July and September.
Car insurance premiums started to rise again towards the end of 2020 after falling previously
Although quarterly prices increased, annual premiums showed a slight decrease from the last few months of 2019 to the same period in 2020.
Between October and December 2019, premiums costs averaged £503.
The research also analysed how location could impact a driver’s premium price.
It found that drivers in East London pay the most in the UK, at £955 a year, which is almost twice the national average of £490.
It is also £265 more than the average premium paid by London drivers as a whole which comes in at £690.
Many of the most expensive locations for premiums were based in the capital including Ilford and Barking, North West London, Southall and Uxbridge, North London and South East London.
On the other hand, licence holders in Kirkwall in the Orkney Islands have the cheapest premiums in the country at just £269.
This is a £686 cheaper than those in East London, reflecting the far smaller risk of accidents and thefts.
| Position | Location | Q4 2020 cost |
|---|---|---|
| 1 | East London | £955 |
| 2 | Ilford and Barking | £877 |
| 3 | North West London | £872 |
| 4 | Southall and Uxbridge | £833 |
| 5 | North London | £832 |
| 6 | Bradford | £776 |
| 7 | Manchester | £765 |
| 8 | South East London | £755 |
| 9 | Birmingham | £753 |
| 10 | Oldham | £748 |
| Source: MoneySupermarket | ||
Meanwhile, gender continues to have an impact on premium rates.
Female drivers over the age of 65 pay the least for their car insurance at an average of £251.
This is £239 less than the national average of £490.
Males aged 20 to 24 pay the most at £1,143 – some £348 more than females of the same age who pay an average of £795.
Looking at age, premiums have fallen the most year on year for drivers aged between 17 and 19.
The average price is down by 19 per cent in the past 12 months now costing an average of £802 – down from £995.
| Position | Location | Q4 2020 Cost |
|---|---|---|
| 1 | Kirkwall | £269 |
| 2 | Dorchester | £277 |
| 3 | Exeter | £278 |
| 4 | Truro | £283 |
| 5 | Dumfries and Galloway | £284 |
| 6 | Llandrindod Wells | £292 |
| 7 | Torquay | £298 |
| 8 | Shrewsbury | £300 |
| 9 | Taunton | £300 |
| 10 | Inverness | £305 |
| Source: MoneySuperMarket | ||
Premiums for this age group also fell £21 over the quarter from £823 to £802.
The 20 to 24 age group pays the most on average, with premiums in the last three months of 2020 costing £980.
This compares to drivers aged 65 or more who pay the least – an average of just £274 a year.
Kate Devine, of MoneySupermarket, said: ‘It’s hard to say to whether the rises will continue.
‘With new lockdown measures now in place following the Prime Minister’s announcement on Monday, a major fall in traffic could lead to lower prices – at least in the very short term.
‘If your policy is up for renewal, the best way to make sure you’re getting the right policy for your needs is to shop around for a better deal – doing so can save you up to £2,802.’
Customers are advised to use price comparison sites to see if they could save money by switching insurer.
Drivers can also contact their insurance firm directly to see if they can negotiate a lower price when it comes to renewing their contract.
The research is based on MoneySuperMarket internal data, all correct as of January 2021.
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