There’s bad news for drivers in Wales, as latest data reveals the average cost of car insurance has increased in the past 12 months, but savvy drivers can combat these rises by shopping around.
New figures reveal the average price of car insurance in Wales is now £686 following a £12 (2%) increase over the past year.
That’s according to Confused.com’s latest, powered by Willis Towers Watson. Based on more than six million quotes every quarter, it’s the most comprehensive car insurance price index in the UK.
Drivers just over the border in Shrewsbury have been hit hardest by these increases, as the price of car insurance in the area has climbed by £21 (4%) in 12 months. This means drivers in this area can now expect to pay £622 for their car insurance, on average.
However, this isn’t the highest price paid by drivers in Wales. Cardiff is revealed to be the most expensive area for car insurance, with the average price now £717, following a £12 (2%) increase in the past year. Newport follows shortly behind, with prices increasing by £19 (3%) year-on-year to £715, on average.
These increases are mirrored across the UK, with figures revealing the average price of car insurance is now at £783, following a £23 (3%) increase over the past year.
The data is released following an interim report by the FCA, which exposes ‘dual pricing’ practices which inflate premiums for loyal customers who renew year-after-year, many of whom are vulnerable.
According to the FCA’s report, insurers are offering cheaper prices to new customers in order to win their business at the expense of bumping up prices for loyal customers. But if insurers are forced to balance out the way they price customers, this could see prices for new customers increase even further. This is why Confused.com is urging drivers to shop around to find the cheapest price.
Evidence of this behaviour was found in further research by Confused.com, which reveals 43% of drivers who received their renewal in the past quarter (July – September), were being charged £53 more, on average.
Although, worryingly, 38% went on to renew with the same insurer, despite the price increase. Most (94%) made the decision not to switch on the basis that the price increase wasn’t significant.