You are here: Home - Insurance - News -

Car insurance costs spike in the fourth quarter of 2018

Written by:
Average motor insurance costs are near all-time highs, with the gap between shopping around and auto-renewal prices increasing.

The Premium Drivers report showed the average car insurance premium the final quarter of 2018 jumped from £727 in September to £744 in October, before reaching £761 in November (averaging £744 over the quarter).

Over the past five years the cheapest premiums available have also become significantly more expensive. As it stands, the average cheapest premium available to drivers is £628, up £181 since the start of 2014. Motorists are paying an average of £217 more for their car insurance today than they were five years ago.

However, premiums remain below their absolute peak. They hit a quarterly average of £757 in the fourth quarter of 2017.

The difference between the cheapest and average premiums stood at £116 in Q4 2018. This price gap was greatest for higher risk drivers aged 17-24. The average young driver now pays an average of £1,520 but could save up to £324 by shopping around.

The rising cost of insurance is partly due to hikes to Insurance Premium Tax which has doubled from 6% to 12% since 2015.

Dan Hutson, head of motor insurance at, said: “Prices have fallen slightly over the past 12 months but drivers are still paying hundreds of pounds more to insure their vehicle than they were three, or even five years ago. However, the potential saving of £116 gives motorists some hope. As premiums have risen, so too have the potential savings to be made. The only way to mitigate these rises and encourage competition among providers is for consumers to shop around every year.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week