Meanwhile, the Confused.com Car Insurance Price Index, in association with WTW, lists Outer London, Manchester / Merseyside, West Midlands, and Leeds / Sheffield as the other expensive regions, with respective averages of £741, £737, £697, and £669 in Q3 2022.
Across the UK, the average premium grew 14% year-on-year to £586. The biggest annual increase (20%) was recorded in Northern Ireland where policyholders pay an average of £631 for comprehensive cover.
The cheapest region, with its £391 average price tag, is the Scottish Borders. The area maintained its position despite a 19% rise in premiums.
“Car insurance prices have risen across the board as insurers have found it increasingly challenging through 2022 to absorb a bitter cocktail of rising cost pressures,” noted WTW’s Tim Rourke (pictured), UK head of property & casualty pricing, product, claims, and underwriting.
“Soaring inflation, rising accident frequency due to a post-pandemic increase in road traffic, higher used car prices, and a supply chain crisis resulting in more costly repairs have caused the biggest annual jump in premiums for five years.”
For Confused.com chief executive Louise O’Shea, now is a great opportunity for insurers to attract new customers as many seek better deals amid financial constraints.
Rourke said: “Rising premiums add to the cost-of-living squeeze facing customers, forcing them to seek savings on insurance. While choosing a higher excess and less add-on products can help reduce premiums, this may also increase the risk of drivers being left without an adequate safety net when they need it most.
“This places further pressure on insurers to keep motor premiums as competitively priced as possible, while continuing to deploy robust defences to policy and claims fraud, which typically rise during difficult financial times.”