Car Insurance Prices in UK Rise in 2011

Jan 18 2012

The cost of car insurance premiums in the United Kingdom rose by 5% to 17% last year, depending on the region, according to new research.

Comparison website Confused and consulting company Towers Watson have both been conducting new research, the results of which suggest that the cost of car insurance in the United Kingdom rose during 2011, but that the rises were frequently highly uneven in nature, often significantly dependant on the region.  Because of this, the overall increase in car insurance premiums came to 4.9% in terms of comprehensive cover and a total of 10.2% in terms of fire and theft cover, which brought the average premium to a price of £844.  The cost of car insurance premiums is believed to have risen quicker than that of inflation in 2011. 

However, in the North-west of England, the prices rose by between 14% and 17%, with motorists based in Bradford, Oldham and Manchester seeing their premiums rising by as much as 17.1%, 14.8% and 4.4% respectively, yet in Dundee, Falkirk and Edinburgh the increase was actually less than 5% in total - up to 4.6% at the most. 

Gareth Klout from Confused commented on the findings of the research, noting that "In 2012 we can expect to see new factors affecting car cover prices, such as the introduction of the EU legislation on gender due at the end of this year."  There was no comment on how the rises affected the price of extended car warranties.

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