The motor insurance industry has enjoyed a bumper year of profits off the back of pandemic lockdowns leading to less incidents and subsequently fewer claims - so why have premiums risen in the last month?
As the UK enters its third full lockdown in the space of a year, many drivers will be staying off the roads, but analysis from MoneySuperMarket has found in the last quarter of 2020, premiums rose from £473 to £490. As expected the cost of an insurance policy dropped year-on-year, but there is no clear explanation as to why the late surge in prices through October to December.
Drivers in London were hit the hardest, as ever owning a car in the capital is an expensive hobby, with the average premium in East London topping out at £955. Compare that to Kirkwall where the average cost is just £269, a massive differential.
Top 10 most expensive locations for car insurance premiums:
Position |
Location |
Q4 2020 cost |
1 |
East London |
£955 |
2 |
Ilford and Barking |
£877 |
3 |
North West London |
£872 |
4 |
Southall and Uxbridge |
£833 |
5 |
North London |
£832 |
6 |
Bradford |
£776 |
7 |
Manchester |
£765 |
8 |
South East London |
£755 |
9 |
Birmingham |
£753 |
10 |
Oldham |
£748 |
The ten cheapest locations for car insurance premiums
Position |
Location |
Q4 2020 Cost |
1 |
Kirkwall |
£269 |
2 |
Dorchester |
£277 |
3 |
Exeter |
£278 |
4 |
Truro |
£283 |
5 |
Dumfries and Galloway |
£284 |
6 |
Llandrindod Wells |
£292 |
7 |
Torquay |
£298 |
8 |
Shrewsbury |
£300 |
9 |
Taunton |
£300 |
10 |
Inverness |
£305 |
Kate Devine, car insurance spokesperson for MoneySuperMarket, commented: "With new lockdown measures now in place following the Prime Minister’s announcement on Monday, a major fall in traffic could lead to lower prices – at least in the very short term."