Connect with us


Car insurance premiums have gone up by 7% – here’s how to cut your costs by £284 a year

CAR insurance premiums are continuing to soar, with prices risingseven per cent over the past year.

That means thatdrivers are forking out an extra 35 for car insurance compared to last year, and 116 more than in 2015.

The cost of car insurance has gone up by 7 per cent over the past year

With the peak time for car insurance renewals just around the corner (March 1st), drivers are being urged to shop around to cut costs.

Those living in Sutton would do especially well to shop around, as residents in the south London borough are paying 19 per cent more for insurance than they were a year ago the highest of any other area in the UK.

Drivers inBlackburn have seen an 18 per cent rise in costs, while those in Galashiels in the Scottish borders saw a 17 per cent increase.

Luckily for residents of Jersey, the area was just one of four of 124 postal areas analysed to see premiums decreaseyear-on-year, with costs falling by 18 per cent, making the average policy just over 261.

The data, compiled by comparison website MoneySuperMarket, found that east London remains the most expensive place to insure your car, with average annual premiums at 1,094.17, while Jersey is the cheapest.

MoneySuperMarket said that in January 2017, the average premium was 535.85, seven per cent higher than the same period a year ago and a huge 28 per cent higher compared to the same period two years ago.

Kevin Pratt, consumer affairs expert at MoneySuperMarket, said: Anyone renewing their policy in the next few weeks should be acutely aware of how premiums have soared in the past couple of years, and should certainly not automatically renew with the same insurer without checking what else is available.

If you stay with the same firm, its a pound to a penny your premium will be increased, but if you shop around youre likely to find a company that will offer you a better price, simply to win your business.

Mr Pratt said that premiums are likely to rise even further this year, following proposed changes to the way compensation is calculated for personal injuries following an accident, which would discount any savings achieved by the governments proposed crackdown on whiplash fraud.

How to save 284 on your car insurance

According to data by Consumer Intelligence, 51 per cent of drivers could save up to 284 by shopping around for better deals.

While comparison sites are very helpful, its important to remember that not all insurers, including Direct Line and Aviva, choose to appear on them.

So, the best way to get around this is to look at more than one site, such,, and

Also, make sure youre getting like-for-like cover, as some policies may seem cheaper but dont have the same cover as you currently have.

Other ways to save money on your insurance

It is illegal to claim someone is the main driver when theyre not, but adding a secondary driver can save you some money and is within the law.

The ideal secondary driver to add to your insurance policy would be someone with a clear driving license and a good no-claims history.

If you can afford to, you should pay for your car insurance in a lump sum rather than paying monthly.

Insurers usually whack on hefty interest charges if you pay monthly, so you can make significant savings by paying upfront.

We pay for your stories! Do you have a story for The Sun Online news team? Email us at[email protected]or call 0207 782 4094

Click to comment

Leave a Reply


Must See


More in Money