Drivers Face £450 Road Fee: Tips to Reduce Costs

The price of car insurance continues to rise, with drivers being warned that the average cost now exceeds £450. This information is according to a new report from Go.Compare.com, which shows an increase in car insurance rates by 2% since the beginning of this year, jumping from £447 to £456. 
 
Compared to the same period in 2023, this represents an alarming increase of 23%, equivalent to an extra expense of £85 for motorists. The research further reveals Greater London as having the highest car insurance premiums at an average cost of £662 per annum, while Wales holds records for the lowest premium costs at around £366 annually—a striking difference that presents Welsh premiums as 80% lower than those observed in London. 
 
Accordingly, comprehensive policyholders were found by GoCompare's study to bear an average annual cost burden amounting up to approximately £455. On another note, third-party fire and theft (TPFT) policies emerged as relatively cheaper options, costing about £449 annually on average, although basic cover like third party only came out significantly more expensive at around 33%, roughly equating to up- to £599 annually. 
 
Tom Banks, Go.Compare's spokesperson for car insurance matters, expressed concerns over these developments, stating, "This quarter's price increase may not be as dramatic as what we witnessed towards the end of the end of last year, but it still remains a significant issue affecting many motorists." 
 
He urged consumers’ awareness regarding factors influencing their premium costs and advocated honesty during quote requests, citing potential savings through minor changes without compromising accuracy. 
 
In terms of risk assessment criteria used by insurers when calculating your premiums, Tom mentioned: “Some things might seem obvious, such as your age and how much you drive each year, but details like where you live along with your vehicle’s make and model also play crucial roles.” 
 
GoCompare’s report indicates lower average premiums (£447) among drivers covering less mileage (6k miles/annum) compared against those driving more (10k miles/annum) at an average premium of £501. This is because insurers see drivers who drive more as being at higher risk and thus charge them a higher premium. 
 
Interestingly, the report suggests possible savings through aptly describing your job during quote requests—for instance, reporting your occupation as a "bricklayer" could yield different results compared to when you claim being a "builder." However, Tom cautions against dishonesty, warning that it may lead to policy invalidation. 
 
Providing further insights into cost-saving methods, Tom remarked: “We recently pointed out how buying car insurance 26 days before the renewal due date can help save costs, but our findings show that about 98% of people miss this window, thereby potentially paying up- to 55% extra.” 
 
He also suggested opting for annual payments over monthly installments and emphasized not auto-renewing while comparing policies every year. He concluded by encouraging motorists to explore the market, saying, “You could make some major savings."