Car insurance costs rise again, new report finds

The latest price index from Go.Compare Car insurance has revealed that the average cost of a car insurance policy has increased by 3% in Q4 of 2024 versus Q3 in 2024.*

The report from the comparison website finds that while the cost of premiums has risen from £437 to £450 in three months, the average cost of a policy remains 3% lower than in the same period in 2023.

The new price index found that on average the cheapest premium available is third party fire & theft policy at £440.** However, for £10 more (£450), you can get a comprehensive policy which provides the highest level of cover. Third party only (TPO) insurance may offer the lowest level of cover but is still the most expensive, with a policy costing an average of £588.

The data also reveals the impact location can have on the cost of your policy. Those in Greater London face the most expensive premiums at £642, while those in Wales pay 43% less with a median cost of £365.***

The report also finds that mileage impacts the cost of insurance, with those driving up to 6,000 miles paying an average of £444 for their premiums and those driving up to 10,000 miles paying an average of £488.****

Tom Banks, spokesperson for Go.Compare Car insurance, commented on the latest index: “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.

“It is good to see prices have fallen 3% overall in the last year, but understandably, it’s important to consumers that they are still making savings where they can and getting a policy with everything they need for the best price.

Tom continued, “Being aware of the factors which could impact your premium is a good place to start. Whether that is your location, age or mileage. These aren't always things you can change - moving house simply to get a cheaper policy isn’t something we would suggest. But there are a few things you can do to make sure you are getting the best deal. Here are our top tips:

• Think about when you buy: Our data shows that purchasing your premium 26 days before your policy is due for renewal could save you some money, especially compared to purchasing it on the day it is due for renewal.*****
• Be accurate with your mileage: How far you drive every year is another factor that could impact your premium cost, so be as accurate as you can. If you aren’t sure how far you drive each year, take a look at your MOT certificate - it will show your car’s mileage at the last few tests.
• Opt for annual payments: If you can, paying annually for your car insurance policy could help you to save money. If you are paying monthly, your insurer treats this as a loan and will be charging you interest.
• Job descriptions matter: If there are multiple titles you can use to describe your profession accurately, try them all out, as your car premium could vary depending on which you use.”

For more tips on how to save money on your car insurance policy, visit here: https://www.gocompare.com/car-insurance/guide/top-tips-for-cheaper-car-insurance/ 

To read the full report on the cost of car insurance visit here: https://www.gocompare.com/car-insurance/guide/how-much-does-car-insurance-cost/