The UK is widely regarded as one of the most expensive countries in terms of living expenses, but our average cost of car insurance in the UK article, reveals that, while not the cheapest car insurance, it is also not the most expensive.
Vehicle owners in the UK are expected to meet pollution reduction requirements. As a result, consumers are compelled to purchase more modern automobiles, which are frequently more expensive and not the least expensive to insure.
However, several other factors influence the UK car insurance premiums, including the fact that UK drivers aren’t always the safest and most cautious, putting insurers at risk.
Assume you’re thinking about buying the cheapest car insurance UK or want to know about the average cost of car insurance per year.
In that case, this article will help you learn more about auto insurance pricing in the united kingdom and what you can do to get the cheapest car insurance that meets your needs.
What is car insurance?
Car insurance covers automobiles, trucks, motorcycles, and other road vehicles. Its primary purpose is to provide financial protection against physical damage or bodily injury caused by traffic collisions, as well as liability that may result from incidents in a vehicle.
Vehicle insurance may also provide financial protection against theft and damage to the vehicle caused by events other than traffic collisions, such as keying, weather or natural disasters, and colliding with stationary objects. The specific terms of vehicle insurance vary according to local laws.
How to get the cheapest car insurance UK
- Pay for your insurance annually
- Be accurate with your mileage
- Enhance your security
- Consider a telematics policy
- Watch out for extras you don’t need
- Increase your voluntary excess
- Downsize or change your car
- Obey the law
- Pay attention to admin charges
Pay for your insurance annually
Paying for your policy annually is usually less expensive where possible.
While paying for your car insurance policy in monthly instalments may help you budget more effectively, it will almost certainly increase the cost.
This is because insurance companies frequently add interest to these payments, causing you to pay more than necessary.
If you have the ability, one option is to use a credit card with no interest on purchases. That way, you get the benefit of monthly budgeting without the additional fees.
Be accurate with your mileage
It’s important to consider how much you use your car and provide an accurate figure when getting a car insurance quote.
In general, the more miles you drive, the more likely you are to file a claim. It stands to reason that this will raise your car insurance premiums.
So, driving fewer miles could help you save money on your insurance.
However, don’t assume that low mileage equals low prices. If you rarely drive, your insurance company may consider your risk as well.
The key is to not underestimate or overestimate your mileage. Check the time and get the exact figure.
Enhance your security
The more difficult it is to steal your car, the lower the risk. This usually results in lower insurance rates. Ensure that you put a security system in your car.
Consider a telematics policy
A telematics (black box) policy allows you to customize your insurance costs based on how, when, and how much you drive.
With a black box, there may be some restrictions on how you use your cars, such as driving curfews or mileage caps. However, if you demonstrate that you are a safe and responsible driver, your costs may be reduced.
Watch out for extras you don’t need
Do you require add-ons such as:
Some of these add-ons may be available as part of another policy or through your bank, for example.
And you might find that buying these extras as separate policies is less expensive than bolting them onto your existing insurance. Even if you do require these extras, you may be able to save some money.
Increase your voluntary excess
Your car insurance excess is the amount you would have to pay if you filed a claim. Set your voluntary excess only to what you are comfortable with.
Your compulsory excess cannot be changed, but your voluntary excess can.
A higher voluntary excess is associated with a lower policy cost. However, keep in mind that this could reduce your payout if you file another claim in the future.
Downsize or change your car
The type of vehicle you drive may have a significant impact on your insurance costs.
More expensive vehicles may be more appealing to thieves. Furthermore, a more powerful vehicle may result in more expensive damage claims. All of this adds up to an increased risk.
The general rule is that the larger and more expensive the car, the higher the insurance premium. These larger vehicles may also incur higher vehicle taxes.
Obey the law
A driving conviction and points on your license make you appear to insurers as a higher risk. So, to keep your costs low, keep your license clean.
The DLVA keeps the majority of your points on your license for four years. However, insurance companies keep them on file for five years.
And if you have more serious convictions, such as drunk driving or driving without insurance, your options for coverage may be more limited.
Remember that when you get your policy, you must declare all active driving convictions to your insurance company. If you don’t, your policy may be voided.
Pay attention to admin charges
You shouldn’t have to worry about admin fees if you’re making changes to your policy as part of your renewal or comparing quotes.
However, if you need to cancel or change your car insurance policy in the middle of the term, you may have to pay additional administrative fees.
Contact your insurance company and inquire about the fees for changes. Although you must keep your insurer informed of any changes that may affect the policy, you may combine multiple changes into one and pay only one admin fee.
Average Car Insurance Cost Per Year in the UK
According to Consumer Intelligence, the following are the changes in car insurance prices in some parts of the UK between August and November 2021, as well as the average premium in November 2021:
- Scotland, 1.8%, £516
- East Midlands, 0.6%, £688
- Eastern England, 0.6%, £581
- South East minus 1.0%, £759
- Wales, 0.2%, £510
- South West, minus 1.0%, £468
- West Midlands, minus 2.1%, £781
- North East 0.0%, £676
- Yorkshire and the Humber, minus 1.7%, £712
- North West, minus 1.3%, £1,104
- London, minus 1.6%, £1,261
According to analysis, typical car insurance premiums began to rise for some age groups and in some parts of the UK towards the end of last year.
According to Consumer Intelligence, the average cost fell by 0.6 percent between August and November 2021, reaching £782.
However, prices in some geographic areas and for older drivers began to rise.
The average premium is still 20% lower than it was in 2017, with fewer cars on the road during coronavirus lockdowns helping to keep insurance costs down overall.
Average car insurance cost by age UK
According to Statista*, the average cost of car insurance for those in their twenties in 2020 was the highest of all age groups, at £851.
The lowest average age group for car insurance in the UK was those in their fifties, with a cost of £468 on average. This does not mean that the older you get, the cheaper your insurance becomes, as the price rises once you reach your 60s.
Average car insurance cost by age:
- 20-year-olds: £851
- 25-year-olds: £719
- 35-year-olds: £639
- 45-year-olds: £575
- 55-year-olds: £468
- 65-year-olds: £491
- 75-year-olds: £752
Average cost of car insurance by gender in the UK
We know what you’re thinking: you can’t discriminate on the basis of gender anymore! Nonetheless, male drivers continue to pay more than female drivers on average.
According to Confused.com, male drivers are approaching the £600 mark, paying £574 on average for car insurance – nearly £100 more than female drivers, who pay £477 on average.
Conclusion
In any case, you should compare car insurance quotes from the best auto insurance companies in the UK to find the most affordable, low-cost car insurance rates near you.
When comparing UK auto insurance, make sure to get as much full coverage vehicle insurance that fits your needs as possible so you can later decide which is best for you.
FAQs about the average cost of car insurance
What is average car insurance cost in the UK?
According to our data, the average cost of car insurance in the UK in 2020 was £526. That works out to £43.83 per month, but if you choose to pay monthly, interest will be added on top, making it more expensive overall.
Average car insurance cost by age uk?
The average cost of car insurance for those in their twenties in 2020 was the highest of all age groups, at £851.
Average car insurance cost per month in the UK?
According to our data, the average cost of car insurance in the United Kingdom in 2020 was £526. That’s the equivalent of £43.83 per month, but if you choose to pay monthly, interest will be added on top, so the total cost will be higher.
