Return to the office sparks small rise in car insurance premiums – but costs are still down 10% on last year
- Car insurance costs increased 2.5% in the last three months
- It is thought costs are rising due to more people commuting to their office
- Premiums are still down by 10.4% compared to last year
The average cost of car insurance has risen to £412 between July and September as more people start heading back to the office, new research shows.
The increase of 2.5 per cent – or a tenner – comes at a time when more commuters are on the road, according to data from MoneySupermarket.
Despite this, prices are still down by 10.4 per cent annually – equivalent to £48 – showing the number of cars on the road have not still returned to pre-pandemic levels.
Car insurance has risen from £402 to £412 as more people start heading back to their offices
Looking at premiums nationally, drivers in London continue to have the highest premiums at an average of £595.
Motorists in the capital are followed by those in the North West who are paying an average of £489 and those in the West Midlands who are spending £477.
Meanwhile, drivers in the South West paid the least at just £298 – £114 less than the national average.
The region that has seen the biggest quarterly increase in prices is the East Midlands, with a rise of 4.5 per cent – equivalent to an average jump of £17.
This is followed by the South West with a 4 per cent rise equivalent to £11 and Scotland with a 3.5 per cent increase equivalent to £11.
Drivers in the North East experienced the smallest increase at 1.1 per cent, equivalent to £4.
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Drivers in the North East experienced smallest increase in premiums at 1.1%, equivalent to £4
Kate Devine, car insurance expert at MoneySupermarket, said: ‘Following significant drops in average premiums prices at the start of the year, prices might be on the rise as the economy re-opens and more of us return to our cars.
‘Regionally, we continue to see big differences in costs with cities like London seeing higher premiums than more rural places such as the South West.
‘This is because insurers factor in a driver’s location when pricing policies – so if you’re in a built up area, you’re perceived as having higher exposure to accident risk.’
When it comes to age, younger drivers were the only age groups to see quarterly price falls of 1 per cent.
Those aged 17 to 19 saw a fall of 1 per cent whilst drivers aged 21 to 24 and 25 to 29 saw a drop of 1.6 per cent.
All other age groups saw price rises, with drivers aged 40 to 49 seeing the highest quarterly premium increases of 1.8 per cent, equivalent to £7.40.
Devine added: ‘Age, too, also has a bearing, with drivers aged 40 plus seeing the biggest premium increases.
‘This is probably due to older drivers being on the roads more which increases their risk factors.’
Customers are encouraged to use price comparison sites to see if they could save money on their car insurance.
Many could save hundreds on their yearly premiums.
‘The good news is that wherever you live and whatever your age group, it’s quick and easy to save money on your car insurance.
‘To avoid higher costs, make sure you don’t let your policy auto-renew and shop around for the best deals early – doing so could save you up to £253.’
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