Confused.com reveals car insurance prices rise by more than 12% year-on-year
The Confused.com/Towers Watson Car Insurance Price Index, Q3 has shown car insurance prices have risen by more than 12% year on year.
Confused.com has revealed that the price of car insurance has risen by more than 12% year on year.
According to the Confused.com/Towers Watson Car Insurance Price Index, drivers have been lumbered with an average year-on-year rise of 12.3% in the cost of comprehensive motor insurance cover - this equates to a £92 jump in just 12 months.
The biggest annual price hikes affect postcodes in the North of England. As of quarter three 2011, Bradford has suffered a 27.5% year-on-year rise in the cost of average comprehensive cover and Oldham has fared even worse with a 27.9% year-on-year increase. Liverpool and Manchester have also seen insurance prices driven up significantly as has the Ilford area of Essex.
Third party, fire and theft (TPFT) customers have not gone unscathed however, suffering an annual rise of 19.9%, equating to an increase of £192 over 12 months.
This rise of 12.3% year-on-year is especially significant when compared to the Consumer Price Index - a measure of inflation - which currently stands at 4.5%, making the rises in car insurance prices almost three times as high as inflation in the UK. The national average comprehensive car insurance premium currently stands at £843.
Top five UK areas with the highest annual premium rises year-on-year, based on the Confused.com/Towers Watson Car Insurance Price Index are Oldham (27.9%), Bradford (27.5%), Liverpool (26.8%), Manchester(26.6%) and Ilford (23.7%).
The five UK areas with the lowest annual premium rises year-on-year include Perth (0.3%), Kirkwall (0.8%), Motherwell (2.2%), Dumfries (2.4%) and Edinburgh (2.5%).
Despite the year-on-year hikes, there is some good news for drivers as the average price of a comprehensive car insurance policy fell by 1.6% in the third quarter of 2011: the first quarterly decrease for over three years.
Gareth Kloet, Head of Car Insurance for Confused.com commented: “The year-on-year picture is quite worrying as some drivers are being hit with more than 25% increases. Car owners in the affected areas are going to have to be as savvy as ever to find the cheapest and best deals for them by shopping around.”
For a more detailed look at the latest index, interested parties can visit: www.confused.com/infographic/car-insurance-interactive-2.
Over 4 million quotes are used in the construction of each quarter’s car insurance price index - this makes it the most comprehensive insurance index in the UK.
About the Index
In line with the draft Office of Fair Trading (OFT) commitments on the use of competitor price data, the prices used for calculating the index has been changed from this quarter to an average of the best five quotes received on Confused.com. Prior quarter and annual comparisons in this release are made on this basis but will not necessarily match figures from previous editions of the Index.
Confused.com was the UK’s first price comparison site for car insurance. Confused.com is one of the biggest and most popular price comparison services. Launched in 2002, it generates over one million quotes per month. It has expanded its range of comparison products over the last couple of years to include home insurance, travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance.
Confused.com is not a supplier, insurance company or broker. It provides a free, objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more.
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