2020 May Hit Motor Insurance Price Record

UK motor insurance prices have increased by 5% over the past 12 months off the back of the biggest quarterly increase in two years.

Insurance aggregation site Confused.com, issued its car insurance price index, in conjunction with Willis Towers Watson, for the fourth quarter of 2019 which examines more than six million car insurance quotes per quarter to provide insight and analysis across the market.

The latest index, found that UK drivers are now paying £815 on average for an annual car insurance policy. This is up £41, or 5%, over the past 12 months. 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.

The average price of car insurance is now nearing the 2011 peak of £858, with motorists today paying just £43 (5%) less than this record price. And if prices continue to rise at the current rate, drivers may be paying a new record by the end of 2020.

Louise O’Shea, CEO at Confused.com said: “It’s January, the month to save money and re-evaluate our spending. But the bad news is car insurance costs 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.

“Please don’t pay more than you have to – take a few minutes to check your renewal letter and get a cheaper price.”

The 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, added Confused.com.

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