Car insurance now costs more. You don’t say.

20 April 2011

car2It has probably not escaped your notice that car insurance is getting more expensive. You might even suggest that insurance companies are scurrilous scoundrels only out to make money for themselves. Which would be pretty accurate.

Anyway, insurance comparison peddler have done some research into the increase in insurance costs, in conjunction with Towers Watson. These figures reveal that the average cost of comprehensive car insurance now comes in at £835, which is a rise of £31 in the last 3 months and £220 in the last 12 months. Price rises for third party, fire and theft (TPFT) car insurance rose by 6.3% in the quarter and 53.6% over the 12 months to the end of March, making the average premium  £1,121. Call me cynical, but perhaps have a vested interest in  announcing really high car insurance figures in the hope that everyone will turn to them in despair and be pleasantly surprised by the reasonableness of their quotations.

However, more interesting are the details of who has been worst affected by the price rises. Somewhat surprisingly, the biggest price rises in the quarter for fully comp insurance hit those reckless and irresponsible drivers in the 36-45 age bracket, whose average quote increased by 5%. However, taking gender into account, 66-70 year old women had the highest quarterly increase of 5.8%.

Insurance for women has increased across the board following the quintessential shooting-in-the-foot victory for the European Court of Justice which decreed that it was illegal under gender discrimination laws for men to be charged more for car insurance than women.  Those little Eurocrats in their own little Belgian bubble presumably thought all insurance would henceforth be charged at the lower female rates. But they clearly didn’t know insurance companies very well.

From a regional perspective, drivers in the North West region faced the highest quarterly increase of 5.4%, with Manchester and Merseyside drivers suffering an annual increase of over 47%. At postcode level, Blackburn had the highest price rises in the last quarter but Bradford is the unlucky postcode with the fastest rising prices over the past 12 months with a whopping 54.4% annual rise.

Better call, since by a massive stroke of coincidence they have an expensive advertising campaign running currently.

TOPICS:   Insurance


  • Rich
    The alt tag on the article image (car2) suggests you had another car lined up originally...was it written off or stolen?
  • Gunn
    You used to think that if you didnt claim for a year on your car insurance, the premium would go down, now its going up regardless, but I always quote elsewhere at renewal time and get them to price match, they'd still rather have some of your money than not at all.
  • stomm
    I've got six years no claims, no convictions or driving offences. My renewal for my car insurance came up this month, cheapest price I could find is £250 more than the policy I had last year. The company I was with offered me a renewal that went from £400 (last years policy) to £1200. I telephoned them to ask why and they didn't have a definitive answer. They said it was down to an increase of thefts in the area. My car is parked behind a locked gate onto a main road..... Same car, same address, same details. So yes insurance has definitely gone up!
  • Alexis
    Is anyone in Manchester and Merseyside actually silly enough to state their car is kept on their own front drive instead of a nice leafy postcode 5 miles down the road?
  • dvdj
    @Alexis - damn you've rumbled me! Mine's insured at my parents in Wigan, still not a great postcode but still comes in half price to that of Manchester City Centre. Also in Wigan it's "parked" on the drive were any scrote can get at it whereas it is in fact parked in a secure underground carpark, second floor down with around 140 other cars, mines one of the last bays so you have to drive past those 140 cars to pick of my specific car, to nick it. And there's much nicer metal in there than my humble car. But despite this, it's double the price. Bollocks. I'll take my chance with insurance fraud thanks, it's already saved me around £2k in the years I've lived in Manchester.
  • Changed N.
    I always look out for those quote questions that ask where your car us "usually" kept overnight...I do have a garage, but Ill be damned if I could get my car in there!
  • Mark H.
    The EU sexism thing doesn't come in until the end of 2012. My renewal premium with Nationwide (i.e. LV) was 30% more than last years. When I asked them they couldn't give me a specific reason why. Always worth shopping around though, I've gone with Aviva and I'm paying less than I did last year for the same cover!
  • Yue
    On the subject of cheaper insurance for women, a friend of mine worked for an insurance company and said it was a well known industry myth. As many women were on their husband's insurance figures always made it look like women are better drivers. Certainly not better at parking anyhow :P
  • Want B.
    [...] gets worse. Coming hot on the heels of last week’s research into soaring car insurance prices by, now another price comparison site has found that the cost of home insurance [...]

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