Which UK regions have seen the highest increase in car insurance quotes?

Photo by Zac Ong on Unsplash

The average quoted price of car insurance jumped by 56.4% in the year to February but the good news for motorists is that there were some signs of a slowdown.

In February, most drivers were quoted between £500 and £749, insights firm Consumer Intelligence revealed.

While the latest rise is lower than the 67.2% recorded in the year to the end of November, it is still the third-highest annual increase recorded by Consumer Intelligence since it started tracking data in 2012.

Max Thompson, insurance insight manager at Consumer Intelligence said: “The new year saw some major brands make competitive movements and reduce premiums.

“However some of this was unwound in February indicating it may have been more of a tactical move than a long-term trend.”

The research looks at the average of the five cheapest premiums returned on price comparison websites. Researchers said telematics providers accounted for 15% of the top five quotes, down from 18% in the three months to the end of November.

Telematics policies use technology to measure how a vehicle is being driven. The policies help insurers to offer premiums that are more tailored to the users of a vehicle.

Among the under-25s, the proportion of top five quotes from telematics providers dropped to 36%, marking the lowest since May 2016.

Annual increases in quoted premiums across Britain in February 2024:

  1. London, 64.8%
  2. Scotland, 61.9%
  3. West Midlands, 61.2%
  4. South East, 60.9%
  5. Eastern England, 57.7%
  6. North East, 55.5%
  7. East Midlands, 52.8%
  8. South West, 50.9%
  9. North West, 50.8%
  10. Yorkshire and the Humber, 49.8%
  11. Wales, 47.5%

Jonathan Fong, manager of general insurance policy at the Association of British Insurers (ABI) added: “Insurers are aware of the financial challenges customers are facing and are determined to keep motor insurance as competitively priced as possible.

“Our motor premium tracker is the only collection based on the price customers pay for their policy, rather than quotes, and shows that the average motor premium increased by 25% last year to £543.

“This was largely driven by above inflation increases in the cost of repairs, thefts and replacement cars, which contributed to insurers paying out a record £9.9 billion in claims for the same period – an average of £1.13 million per hour.

“As an industry, we’re committed to supporting customers and finding ways to help tackle the cost of providing motor insurance. Our 10-point roadmap to combat the rising costs encourages greater collaboration with government and relevant stakeholders.”