Wales car insurance prices fall by £116 annually

The cost of car insurance in Wales has dropped as much as £116 (-17%) over the past 12 months, on average, new data reveals.

The average price of car insurance in Wales is now £555 – though some drivers could be paying more.

That’s according to the latest car insurance price index from Confused.com, powered by WTW. Based on more than 6 million quotes, it’s the most comprehensive car insurance price index for new policies in the UK.

Drivers in South Wales, in particular, are now paying £572 for their car insurance – a £116 (-17%) drop compared to this time last year. Meanwhile in Central & North Wales, prices are now £514. This is £70 (-12%) less compared to 12 months ago.

According to the data, Cardiff has seen the biggest drop in prices in Wales in the past 12 months. The average price of car insurance in the area is now £596, following a £130 (-18%) decrease year-on-year. In Central & North Wales, drivers in Shrewsbury are benefitting from the biggest savings in the region, of £81 (-14%). This brings the average premium in the area to £503.

Despite seeing the biggest drop in prices in Wales, Cardiff is still the most expensive area in the region for car insurance. In Central & North Wales, it’s drivers in Llandudo who are paying the most, at £526. This is despite a £63 (-11%) drop in prices in the past 12 months.

Car insurance prices in Wales

It’s a similar picture across the rest of the UK, where car insurance prices fell by £136 (-16%), on average, in the past 12 months. This means the average driver in the UK is now paying £735 for their car insurance.

Car insurance prices have been dropping in the UK consistently since the beginning of 2024. This may come as good news to drivers, but prices are still 25% more expensive compared to almost 3 years ago. This is having a financial impact on many drivers.

According to further research, more than half (54%) of UK drivers have had to make a financial sacrifice to pay for their car insurance. Almost 1 in 3 (29%) admit they’ve had to take money out of their savings. More than 1 in 7 (16%) have had to cut back on personal spending to pay for insurance. Many are also changing their driving habits to reduce costs, with 1 in 7 (14%) claiming they’re starting to drive less due to the rising cost of motoring. A further 1 in 10 (10%) have, or have considered changing their car to save money.

However, the good news is that prices are currently cheaper across the board for all drivers who have shopped around and bought a new policy. The research also shows renewing customers may not be seeing the same savings. A survey of 2,000 UK drivers found that more than 2 in 5 (42%) drivers received a higher price from their insurer at renewal in the past 3 months. This averaged at £81 more expensive compared to the previous year. Two in 5 (40%) chose to shop around using a price comparison site and switch insurers, saving £91 on average.

Meanwhile, less than 1 in 4 (24%) received a cheaper renewal price, in comparison. Their renewal quote was £53 cheaper compared to the previous year, on average. Despite potentially saving money on their renewal, more than 2 in 5 (42%) decided to shop around and switch, seeing an even greater saving of £83, on average.

It’s clear shopping around is resulting in significant savings for many. And with prices at the lowest point in more than 2 years, buying a new policy now could benefit many drivers.

Advice

But even with prices dropping, car insurance remains expensive for many, though there are ways drivers can save more at renewal:

Shop around early: Research shows that most drivers shop around for their car insurance about 15 days on average before their renewal. But further data shows that the sweet spot to get the best price is around 3 weeks before renewal. So, getting a quote just that little more in advance could help you find a better deal.

Be accurate with your mileage: Trying to lower your premium by underestimating your mileage can actually cost more. For example, drivers who report 5,000 miles per year pay an average of £783, while those driving 9,000 miles are paying an average of £655. Always be honest about your mileage when buying insurance. If you exceed your annual mileage, you could risk invalidating your policy.

Share the driving: Adding a named driver to your policy, especially one with more experience, could help save money on your insurance. Data shows that those listed as the sole driver on their policy pay an average of £831 for car insurance. In comparison, those with an additional driver pay £709.

It’s important to remember that the policy holder should always be the main driver of the car. Using another driver as the policy holder, or main driver could be classed as insurance fraud, otherwise known as fronting.

For more information on how to save money on car insurance visit: https://www.confused.com/car-insurance/guides/tips-for-cheaper-car-insurance

Rhydian Jones, motoring expert at Confused.com car insurance commented: “Car insurance prices are at the lowest in more than 2 years. And this means if you’re due to renew soon, then you’re likely to see great savings when shopping around. But we also know that those renewing may not see the same savings. This is why it’s important to take a note of your renewal price, and shop around to see if you can do better.

“It’s important to take advantage of prices when they’re dropping. The cost of motoring is still very high, so any savings made can help you elsewhere – whether that’s money in your savings, or towards other living costs. And shopping around 3 weeks before your renewal is due could be the best time to get the lowest price.”