The recent surge in car insurance costs has become a significant concern for many learner drivers as they set out on their driving career. In the past year, there has been a startling 58% increase in the average cost of fully comprehensive car insurance policies, with the new average price reaching £995. This rise in insurance costs can be attributed to several factors. The increase in the number of cars on the road post-pandemic has led to more accidents and consequently, more claims. Additionally, inflation has driven up the costs of parts and labour, making repairs more expensive. This is particularly challenging with modern cars, which often require specialized technology and equipment for repairs.
It’s interesting to note that car insurance costs have been on an upward trend for the past few years, with significant jumps in the average price. In 2020, the average cost was around £575, which dipped slightly in 2021 to £529, but then rose to £629 in 2022, and skyrocketed to £995 in 2023.
The impact of these price hikes varies across different groups. For instance, drivers in Inner London experienced a 59% increase, with their insurance costs averaging £1,607. Male drivers generally pay more than female drivers, with an average cost of £1,607 for males compared to £1,291 for females. This difference is influenced by factors such as the value of cars driven and the number of motoring convictions, which tend to be higher among male drivers. Young drivers, particularly those aged 18, are the hardest hit, with their policies costing more than triple the national average.
Despite the steep increase in insurance costs, drivers can still find ways to reduce their expenses. Shopping around for better deals, paying annually, increasing voluntary excess, and building a no-claims bonus are some effective strategies. Additionally, while car insurance costs have risen, fuel prices have shown a decrease, with petrol now costing around £1.41 per litre and diesel £1.49.
For those considering purchasing a new car and seeking to keep insurance costs low, it’s advisable to look for vehicles with a low insurance group rating. Cars like the Volkswagen Polo, Ford Fiesta, and Toyota Yaris are known for their affordability in terms of insurance, making them excellent choices for cost-conscious buyers. Talk to your Bookinstructor.co.uk ADI and get some other independent advice, as you want to make the correct decision first time when purchasing your car!