Car Insurance Levels Uk

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Our analysis of 2.5 million car insurance quotes from MoneySuperMarket suggests that 19 million UK low-mileage drivers (those who drive less than the UK average of 7,134 miles per year) are at risk of being overcharged for car insurance.

Car Insurance Levels Uk

On average, drivers who drive between 5,000 and 6,000 miles a year are charged an average of £233 more than those who drive 11,000 miles a year.

How Is My Car Insurance Calculated?

Car insurance is a very simple concept. You pay your insurance company for coverage each year and you are protected if the worst happens. The price you pay for your insurance is based on how likely the insurance company thinks you are to make a claim. The lower the risk (e.g. due to your good driving record), the lower the cost of your insurance. it is fair.

Your insurer will consider a number of factors to determine how risky you are, one of which is how much time you spend on the road. This means that if you don’t park and drive, you are more likely to get into an accident. So car insurance premiums for lower mileage drivers should be cheaper, right? false Unfortunately, evidence shows that payments from lower-mileage drivers are used to subsidize the cost of insurance for higher-mileage drivers. This is not fair.

We’ve analyzed nearly 2.5 million car insurance quotes on the MoneySuperMarket comparison site. We found that the lowest mileage drivers (drivers who say they drive less than the national average) can actually pay up to £389. 

According to the latest MoT data released by the Department for Transport, the average UK driver drives 7,134 miles a year, which (according to our calculations) means that up to 19 million drivers are at risk of overpaying for their car insurance.

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That’s why we launched our pay-per-mile policy in 2018. We felt it was time for low-mileage drivers to be rewarded with smarter and fairer car insurance. This is possible because, unlike many traditional insurance providers, we can accurately measure the miles driven by our members. We believe that the less you drive, the less you pay. It really is that simple.

“It’s in our DNA to help drivers get the best deal on their car insurance, so offering cover per mile was a no-brainer. We want to put the brakes on low mileage driver overload. If you drive less, you should pay less.

“It’s always important to shop around to make sure you get the best deal for your car insurance. This now includes looking at new technologies that offer drivers a more flexible way to insure their vehicles.”

For too long, drivers have been led to believe that the price they pay for car insurance is linked to the miles they drive – and that means the less they drive, the less they pay.

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This analysis shows the opposite, with the cheapest car insurance quotes being given to drivers who report driving 11,000-12,000 miles per year.

Drivers with more experience are also overcharged, with 50 to 64-year-olds driving 5,000 kilometers a year paying £100 more than those driving 11,000-12,000 kilometres.

Drivers who have done between 6 to 8 years of no-claims discounts and drive 5,000-6,000 miles a year are still charged £100 more than those who drive 10,000-11,000 miles a year.

“It’s obvious to charge less experienced drivers more, but if someone has been driving for 20 years it will have little effect on their driving ability whether they now drive 3,000 kilometers or 10,000 kilometers a year.” No claim discounts reflect experience, but drivers with lower mileage are still penalized.

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No claim discount is accumulated by drivers for a year in a row that they have not claimed on a policy and as such is a good indicator of the driver’s driving experience and road safety.

A graph of the cheapest annual car insurance rates by age (index to 1 at an estimate of 11,000-12,000 miles).

For most age groups (drivers aged 20-64), drivers found it cheapest when they planned to drive a high number of miles between 11,000 and 12,000 miles per year, but bigger deals come for drivers who plan to drive 25, , 000+ miles or less than 1,000 miles. It was particularly surprising to see this effect even among older drivers, who would generally have years of additional driving experience.

Surprisingly, only drivers with little or more driving experience (17-19 and 65 years old) saw cheaper offers for lower mileage.

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Although the most common annual mileage reported in our analysis was between 5,000 and 6,000, the cheapest deals were given for driving between 11,000 and 12,000 and drivers with lower mileage paid £232.59 more for their car insurance.

The cheapest deals are usually for those who estimate their annual driving to be 12,000 miles, which is more than 50% higher than the UK average.

The most common number of drives per year was 5,000-6,000 years (19%), but the most citations by age group saw drivers aged 30-39 (23% of all citations).

3) The prices shown are the average prices of the cheapest car insurance returns for each age and annual mileage group.

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Note: In all cases, whether referred to as “average price”, “average quote” or otherwise, the prices shown in this report are the average price of the cheapest car insurance quotes returned by age and annual mileage.

1) Data based on 2,466,055 customer quotes from car insurance companies on MoneySuperMarket from 1 July 2018 to 30 September 2018. The prices shown are the average prices of the cheapest car insurance quotes returned for each age and annual driving group. Origin

2) 31.6 million vehicles licensed in the UK in September 2018, according to the Department for Transport. Origin

3) 8,755,173 out of 14,503,248 cars were driven less than 7,134 miles per year (60.4% of all UK cars). The UK average was 7,134 miles per year in 2017, according to the latest MoT data from the Department for Transport. Vehicles less than three years old are excluded from MOT data. Origin

Car Insurance Groups

4) 60.4% of 31,600,000 vehicles are 19,086,400 cars. This suggests that 19 million drivers are at risk of being overcharged for their car insurance, according to the data analysis above. Origin

By Miles is a UK start-up that provides car insurance for people who drive less than 7,000 miles a year. Drivers pay a small down payment for annual insurance and are billed at the end of each month for mileage. This gives many drivers the chance to reduce charges if they use the cars mainly for regular short journeys or at weekends.

As of 31 January 2019, we have a Trustpilot rating of 9.7 and have Defaqto’s highest rating of 5 stars. By Miles is authorized and supervised by the Financial Supervisory Authority.

MoneySuperMarket is the UK’s largest price comparison website. They offer free online tools to help people manage, save and grow their money, by enabling them to compare and switch insurance, money and home care products from over 980 providers across 44 different channels.

Car Insurance Cost

MoneySuperMarket is part of Moneysupermarket Group PLC, an established member of the FTSE 250 Index. In 2017, they helped almost eight million families save around £2 billion in their household accounts, including five million saving money on their insurance. better harmony with their finances and more than half a million households changed their energy. supplier.

Moneysupermarket.com Limited is an appointed representative of Moneysupermarket.com Financial Group Limited, authorized and regulated by the Financial Conduct Authority (FCA FRN 303190) for the insurance, mortgage and consumer credit products it offers. For energy products, MoneySuperMarket is recognized. According to Ofgem’s confidentiality rules. When buying your next tire, you probably have important factors in mind such as price, reliability, fuel economy and performance. However, drivers often overlook one important factor that affects ongoing electricity costs – the car insurance class rating.

In the UK, each car model falls into one of 50 insurance groups set by the Association of British Insurers (ABI) – with Group 1 representing the cheapest group to insure and Group 50 the highest premium. This system allows insurance companies to calculate quotes based on the cost of spare parts, repair time, accident frequency and theft risk.

So while a projected high-performance machine may seem attractive, ongoing insurance costs can far exceed expectations and swallow money that could be used elsewhere. Read our guide to UK car insurance groups to help you keep your budget in check when it comes to managing your monthly car spend…

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Comprehensive insurance is rated as the highest level of car insurance in the UK and is designed to give added peace of mind