Car insurance prices have risen for the first time since the end of 2023, reaching an average of £719, according to Confused.com. Drivers over the age of 70 face a £482 charge to legally stay on the road, while premiums do not fall below £1,000 until around age 30 and only approach the UK average in the mid-to-late 30s.
Price Trends and Comparisons
Prices have fallen by £38 over the past 12 months, making car insurance 5% cheaper than this time last year. However, the latest figure of £719 is £8 more expensive than just three months ago, marking the first increase in premiums since late 2023. Drivers in their 60s pay some of the lowest amounts, averaging around £465.
Matt Crole Rees, Motor General Manager and Motor Insurance Expert at Confused.com, said: “Drivers have benefitted from car insurance price drops for some time now. But now we’re seeing that prices are starting to increase slightly in recent months, which means motorists could soon see their price increase when it comes to their renewal.”
Legal Requirements and Risk Factors
Under the Road Traffic Act of 1930, it is law in the United Kingdom to have at least third-party cover when driving on any road. Insurance provides financial protection in the event of an accident or vehicle theft.
“Car insurance prices are generally calculated based on risk and claims. And while there have been fewer reported claims in recent years, the increases we’re starting to see are likely down to the fact that when a claim is made, it’s more expensive for insurers to rectify,” added Rees.
Tips for Saving on Insurance
Rees advised motorists to shop around at renewal time to ensure they get the best price. He emphasised not leaving it to the last minute, noting that data shows getting a quote 28 days before renewal could save as much as 53% on the premium. “Being organised and getting it sorted early can pay off,” he said.
