That was short-lived! The cost of car insurance is rising again – and drivers in East London can expect premiums that are DOUBLE the national average
- Car insurance premiums for the last three months of 2020 averaged £ 490
- This is £ 17 plus compared to the summer when fewer cars were on the road
- It has been found that motorists in East London pay the most for their insurance
Motor insurance premiums rose towards the end of 2020 after four consecutive quarters of falling, new research has shown.
According to MoneySupermarket, the average fully comprehensive car insurance cost in the last three months of 2020 was £ 490.
This came after a period where prices gradually fell over the course of 2020, partly due to people driving less due to lockdown restrictions.
However, premiums rose 3.6 percent through December from £ 473 between July and September.
Car insurance premiums rose again towards the end of 2020 after previously falling
Although quarterly prices increased, annual premiums decreased slightly from the last months of 2019 to the same period in 2020.
Between October and December 2019, the premium cost averaged £ 503.
The study also analyzed how location could affect a driver’s premium price.
It found that East London drivers pay the most in the UK at £ 955 a year, almost double the national average of £ 490.
It’s also £ 265 more than the total average premium paid by London drivers which is £ 690.
Many of the most expensive locations for rewards were in the capital, including Ilford and Barking, North West London, Southall and Uxbridge, North London and South East London.
On the flip side, licensees in Kirkwall, Orkney Islands, have the cheapest premiums in the country at just £ 269.
This is £ 686 cheaper than East London which reflects the far lower risk of accidents and theft.
|position||place||Q4 2020 costs|
|1||East London||£ 955|
|2||Ilford and Barking||£ 877|
|3||North West London||£ 872|
|4th||Southall and Uxbridge||£ 833|
|5||North London||£ 832|
|8th||South East London||£ 755|
In the meantime, gender continues to affect premium rates.
Women drivers over 65 pay the least for their car insurance, averaging £ 251.
This is £ 239 less than the national average of £ 490.
Men aged 20 to 24 pay the most at £ 1,143 – about £ 348 more than women of the same age who pay an average of £ 795.
In terms of age, premiums for drivers between 17 and 19 years of age have decreased the most compared to the previous year.
Average price is down 19 percent in the last 12 months and now costs an average of £ 802 – down from £ 995.
|position||place||Q4 2020 costs|
|5||Dumfries and Galloway||£ 284|
|6th||Llandrindod Wells||£ 292|
Premiums for this age group also fell £ 21 in the quarter, from £ 823 to £ 802.
The 20 to 24 age group pays the most on average. The rewards for the last three months of 2020 are £ 980.
This is comparable to drivers 65 and older who pay the least – just £ 274 a year on average.
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MoneySupermarket’s Kate Devine said, “It’s hard to say if the rise will continue.
‘With new lockdown measures following the Prime Minister’s announcement on Monday, a sharp drop in traffic could – at least in the short term – lead to lower prices.
“When your policy needs to be renewed, the best way to ensure that you are getting the right policy for your needs is to look for a better deal. That way you can save up to £ 2,802.”
Customers are advised to use price comparison sites to see if switching insurers can save them money.
Drivers can also contact their insurance company directly to see if they can negotiate a cheaper rate when renewing their contract.
The research is based on MoneySuperMarket’s internal data, all of which are accurate as of January 2021.