Drivers in London are likely to be disgruntled at the news they typically pay 50 per cent more for their car insurance than the national average.
According to the latest findings from comparethemarket.com’s Premium Drivers report, the average insurance cost in the UK is £736 a year. However, this jumps by 49.85 per cent to £1,102.86 when it comes to those living in the capital.
While the difference of £366.86 over a year might only amount to an extra £30.57 a month, the figure is even more shocking as those in the south-west tend to pay just £557.39 for their entire annual cover.
Insurance providers determine the bills according to the risk profiles for each area, which is why premiums are generally much lower for vehicles in rural areas than cities. This is because accidents, thefts and incidences of vandalism are much higher in urban locations than in more remote regions.
Dan Huston, head of motor insurance at the price comparison site, said: “While the cost of car insurance is obviously not a key consideration in choosing where to live, these figures are further evidence of the huge disparity in the cost of living for people in urban areas versus rural.”
He went on to say moving to cities for employment opportunities “comes at a cost” for many people.
While the risk profile for drivers in London is clearly higher, this is still disappointing for people living in the capital, particularly those who are already struggling with their car insurance bills.
This is despite recent findings from the Association of British Insurers (ABI) revealing the average cost of car insurance has dropped to £466 per annum, representing the lowest level for two years.
It’s Motor Insurance Premium Tracker, released earlier this week, found the average cost fell by £15 from the first quarter of 2019 compared with the previous three-month period. This is the largest quarter-on-quarter decline since 2013, and was the fourth quarterly decline in a row.
ABI’s assistant director and head of general insurance policy Mark Shepherd stated this is “great news for motorists after several years of rising premiums”.
However, he noted that drivers still face steep financial pressures, which is why he continues to recommend shopping around for the best insurance deals on the market.
Indeed, GoCompare released a statement in response to ABI’s report, saying that while the decline in costs is good news, motorists are still typically paying £80 more for their cover than they were in 2014.
“The truth is that premiums rose sharply for three years to the end of 2017 and we are only now starting to see a slight adjustment. Therefore, most drivers are still paying very high prices for their car insurance,” Matt Oliver from the price comparison site stated.
He went on to remind drivers that insurance providers “don’t just hand out savings to existing customers”, so it is important to switch company regularly to get the best deals.
It is also essential for motorists to keep their vehicle in good condition to save paying steep repair costs. For quality car servicing in Uxbridge, get in touch with us today.