South Wales car insurance prices rise by £ 10 in three months
The post-Christmas pinch is made worse for motorists in South Wales as new data shows the cost of car insurance in the region has risen in the past three months.
The cost of car insurance in South Wales has increased by + 1%, equivalent to + £ 10 in three months, with motorists in the region now paying £ 704 on average. This is according to the UK’s most comprehensive auto insurance price index, based on over six million quotes per quarter from Confused.com and powered by Willis Towers Watson.
While this increase may seem small, prices appear to be accelerating at a much faster rate than three months ago, when the cost of car insurance rose by £ +1 (+ 0%) in comparison (Q3 2018 ), after four consecutive quarters. of decreases.
However, the current price of insurance in South Wales is still -43 £ (-6%) cheaper than 12 months ago, despite the increases seen this quarter (Q4 2018).
To help area motorists see how these increases impacted their own premiums, Confused.com created a auto insurance calculator (opens in a new window). The tool allows users to enter their region, age and gender to see the average cost of premiums for their demographic, compared to 12 months ago
Motorists in Newport will particularly feel the effects of these increases, as it turns out to be the most expensive area in South Wales for car insurance. Motorists in the region pay £ 719, after an increase of + £ 23 (+ 3%) in the quarter, on average.
These increases reflect the direction in which car insurance prices are heading across much of the UK. According to data, the cost of car insurance in the UK has increased by + 2% in the last three months – equivalent to + £ 14 – to reach £ 774 on average.
This is the second consecutive increase since a brief period of price slowdown that began in the third quarter of 2017. And prices are rising at a faster pace than three months ago, when they only increased. by + 1% (+ £ 8) in the quarter (Q3 2018) in comparison. While car insurance is still -6% cheaper (- £ 53) than 12 months ago (Q4 2017), with the acceleration of the rise in prices, the worst could be yet to come. to come.
It appears that motorists who stay with the same insurer are already starting to see these increases reflected in their renewal prices. A nationally representative survey of UK drivers found that over half (57%) of motorists who renewed their car insurance in the last quarter (October – December 2018) saw their premium increase by £ 48 when they opened their renewal notices, on average, because insurers don’t reward loyal customers. However, worryingly, more than half (56%) of the drivers who renewed their insurance in those months stayed with the same insurer, suggesting they didn’t look for a better deal elsewhere.
The Confused.com study follows investigations by the Financial Conduct Authority (FCA) and the Competition and Markets Authority (CMA), which reveal “loyalty penalties” imposed on customers who choose to stay with the same supplier, rather than shopping. And with the post-Christmas pinch starting to tighten and the UK in a time of economic uncertainty, Confused.com is urging drivers to check their renewal price and shop around for a better deal.
As prices start to rise at a steady rate, motorists will feel the pinch when purchasing auto insurance, although some are more so than others. In particular, car insurance is more expensive for men of both sexes, with the price differential for UK male and female drivers increasing to almost £ 100. The cost of car insurance for male motorists increased by + £ 15 (+ 2%) in the quarter, bringing the overall average to £ 817. This opens the price gap for men and women to a difference of + £ 98 since the last quarter (Q3 2018), with women paying £ 719 in comparison, on average. That’s + £ 11 (+ 2%) more than they paid three months ago.
While the EU Gender Directive prohibits insurers from rating a driver based on their gender, there are other risk factors that cause men to pay higher premiums. For example, men tend to drive more expensive cars with bigger engines and loaded with new technology, on average, resulting in higher value claims. They also tend to have a lot more driving beliefs than women, as Confused.com’s “Gender Gap in 100 Drivers” research points out. However, it is not clear whether these laws will remain after Brexit, which could lead to a widening of the gap to the same scale as before the introduction of the EU Gender Directive, where men paid up to to £ 121 more for their car insurance (Q4 2011).
As the cost of auto insurance increases for the majority of motorists, older drivers experience the increases more than others. In particular, 68-year-old drivers in the UK saw the biggest quarterly increase in the cost of their insurance, with the average price increasing by + 8% – or + £ 41 – in the last three months to reach £ 544. It’s just – £ 22 less than the most expensive price paid by drivers of this age in the third quarter of 2017. Motorists aged 59 and 67 have also seen their car insurance costs rise significantly this quarter, both ages seeing an additional + 7% last quarter price, equivalent to + £ 35 and + £ 30 respectively.
However, not all motorists will have seen these increases when submitting auto insurance. In particular, the price of auto insurance for 17-year-olds actually fell to the lowest since 2006, providing some breathing space for young drivers and potentially new drivers. The average cost of car insurance for motorists this age has fallen by – £ 349 (-16%) year over year and – £ 98 (-5%) over the past three months, but still remains an exorbitant amount of £ 1,855.
As auto insurance is on the rise, motorists will breathe a sigh of relief as auto costs such as fuel prices have fallen, making January a little more bearable. The cost of fuel across the UK started to rise rapidly during 2018, but has declined significantly since October, according to Confused.com’s fuel price index. Gasoline in particular has become more affordable, dropping from 131p / l in October to 123p in December, on average. Meanwhile, the price of diesel has fallen from 137p / l to 132p / l over the same period, providing some breathing space for motorists as auto insurance prices continue to weigh on drivers.
Amanda Stretton, Automotive Writer at Confused.com comments:
“Auto insurance prices are picking up steam and increasing in South Wales for the second quarter in a row – and this quarter we have seen prices rise at a much faster rate. It’s the last thing drivers need as they face the post-Christmas squeeze and as the UK enters a period of economic uncertainty due to Brexit.
“If there’s a time to rethink and refresh your finances, it’s now. A recent CMA survey found that customers who stay with the same supplier for household services face a combined ‘loyalty penalty’ of £ 4.1bn per year. And with an impending FCA investigation into “hidden” discrimination among auto insurance customers on the horizon, the problem with loyalty penalties appears to be bigger than we initially thought.
“Our own research shows that some customers pay the price to stay loyal to their insurer, their renewal price being higher than the previous year. Disturbingly, many motorists renew without even trying to shop.
“All motorists should be looking for the best deal, whether they are a new driver or renewing for the tenth year, because there is always another insurer ready to give you a better deal. At Confused.com, we are certain that some motorists will be able to find a better price than what their current insurer offers that we offer to beat their renewal quote or give them the difference, plus £ 20 (4).
“Please don’t pay more than you have to pay – take a few minutes to check your renewal letter and get a cheaper price.” “