Half of drivers hit with higher car insurance renewal quotes

More than half of drivers are being quoted higher car insurance prices at renewal despite the average cost of cover falling, according to new data from Confused.com.

A survey of 2000 drivers found that 51% received a renewal quote higher than the amount they paid the previous year, with the increase averaging £68. However, Confused.com's latest car insurance price index puts the average annual premium at £713 – £22, or 3%, lower than a year ago and 17% cheaper than two years ago.

The comparison service says drivers who switched provider at renewal saved an average of £80. Even among the 19% who were offered a cheaper renewal price by their existing insurer, switching provider resulted in an average saving of £53.

Renewal quotes rise despite falling premiums

However, Confused.com advises against sticking with your automatic renewal quote when the time comes to sign up for a new year of cover, just because overall prices are stable.

That’s because it followed up its latest price index data with a survey of 2000 drivers, and discovered that 51% had received a renewal quote that was higher than their previous coverage, averaging £68 more than their previous year.

As you might expect from a price comparison service, Confused.com advises shopping around. Data suggests drivers who switched to a new provider at renewal saved an average of £80. It also notes that 19% of drivers received cheaper renewal quotes, but still achieved an average saving of £53 by switching providers instead.

Insurance prices fall for younger drivers

Although typically experiencing some of the highest insurance costs, younger drivers are benefitting from lower year-on-year prices. The latest index showed that 17 year olds pay an average of £1755 a year, down £253 from a year ago, while 18 year olds - typically the most expensive age bracket - pay £2083, down £259 from last year.

At the other end of the timeline, older drivers have seen their insurance costs climb in the last year. For 70 year olds, prices are up £20 to an average of £411.

Where you live has a significant impact on prices, too. Inner London is the most expensive place in the UK for car insurance, with motorists paying an average £1079 a year, albeit down £70 from a year ago.

However, prices in Northern Ireland have jumped, with the average now £1059, having climbed a significant £209 since last year.

Money saving tips

If your car insurance is up for renewal soon, Confused.com has the following tips:

• Be honest with your mileage - stating a lower annual mileage to save cash can invalidate your policy, while overestimating can mean you pay too much.

• Add another driver - if you live with someone, be it a partner, parent or child who might use your car, it can be worth adding them to see if you could save. Data shows sole drivers pay an average of £806, while those with an additional named driver pay £691

• Make your car harder to steal - adding things like a wheel lock or tracking device could save cash, as can where you park it, with drives and residential parking areas considered lower risk

• 28 days earlier - according to Confused.com data, getting a quote 28 days before your renewal could be 53% cheaper than buying on day of your renewal