Overall, the cost of Car Insurance has fallen by 16% for 2022 but in some areas, it continues to rise.
In 2022, the cost of Car Insurance has experienced the steepest fall in seven years. According to the Car Insurance Price Index, the average cover now costs £514.
This downward trend has continued for some time throughout the pandemic, slowing at points during the easing of lockdown.
It’s a welcome financial saving for car owners, along with the 5p cut to fuel duty announced by Chancellor Rishi Sunak in March 2022 – the costs associated with car ownership had brought a considerable financial burden to many in recent months, and particularly during the pandemic.
While the slow change is good news for many, there are areas across the UK in which Car Insurance premiums have risen, especially for older drivers.
Who is affected?
In the last quarter of 2021, the average Car Insurance prices increased in Scotland, the East Midlands, Eastern England and Wales. The North East saw no impact and the rest of the UK saw their premiums decrease overall.
Amongst the areas which experienced the biggest drops in premiums were the West Midlands and Yorkshire and the Humber.
Below is a breakdown of Car Insurance changes throughout August – November 2021 and the average premium in November 2021, according to Consumer Intelligence:
- Scotland, 1.8%, 516
- East Midlands, 0.6%, £688
- Eastern England, 0.6%, £581
- South East, minus 1.0%, £759
- Wales, 0.2%, £510
- South West, minus 1.0%, £468
- West Midlands, minus 2.1%, £781
- North East, 0.0%, £676
- Yorkshire and the Humber, minus 1.7%, £712
- North West, minus 1.3%, £1,104
- London, minus 1.6%, £1,261
Is this the start of cheaper Car Insurance?
Despite an overall drop in Car Insurance figures at the start of the year, as workers begin to return to the office and more drivers get back out on the road, we may start to see our premiums increase in tandem.
Stephen Jones, UK P&C Consulting Lead at Willis Towers Watson commented that the outlook on pricing for 2022 is ‘extremely uncertain’, indicating that it’s not yet clear which way premiums will go in the latter end of the year.
How Gravity Risk Services Ltd can help you get the right cover
Having the right cover while out on the road is essential and often when arranging Vehicle Insurance through a price comparison site, it can be difficult to know exactly what you’re covered for.
At Gravity Risk Services Ltd, we can help you get the right protection for you and your vehicle, whether you want to insure a car, van, motorbike, commercial vehicle, fleet or something else.
To find out more about how we can help you, just get in touch email at firstname.lastname@example.org or call 0121 270 5809 where you can speak to one of our expert advisors.