What is the Average Cost of Car Insurance?
For all UK drivers, is it vital that they purchase a car insurance policy to cover them while out on the road, not only for financial security, but also because it is a legal requirement in the UK - if you don't have a policy while driving, this could land you in some serious trouble.
While an essential expense, drivers often find that it is an expensive one at that, and many motorists are either paying too much for cover or simply don’t know what the average price is, so they may feel that the deal they currently have is a good one.
In the world of insurance, it certainly pays to do your research and our guide is here to help. Here, we tell you the average cost of car insurance, explain how it is calculated, why premiums can be so expensive, and we provide you with a list of easy tips to help you cut the cost.
In this guide:
Unfortunately, there is no straight answer to this question, as the cost of cover can vary between individuals and car insurance providers. Prices can also fluctuate throughout the year as insurers compete with each other on prices and if major life events take place, such as the Coronavirus pandemic, but the cost also largely depends on your personal details and driving history.
While we can’t give you an exact number for the average price, we can tell you what industry experts say.
Last year in 2019, a study carried out by the Statista Research Department found that younger drivers paid more for fully comprehensive cover than older, more experienced drivers, with a policy for a 20-year-old costing an average of £850 and car insurance for a driver in his/her 30s was £639.
The Association of British Insurers (ABI) reported that the average motor premium in 2019 was a much lower £471, while according to Confused.com’s Car Insurance Price Index for 2019, the average premium was as much as £815 by the end of the year, with premiums rising by 5.4% (roughly £42) on average.