Scottish car insurance prices drop for the first time in over three years

Premiums in the region have dropped between £37 and £58 in 12 months, with Scottish drivers now paying up to £638 to insure their cars on average.

The drop follows more than three years of price hikes, but still sees Scotland lagging behind the rest of the UK, where prices took a bigger U-turn three months ago.

The average UK premium fell £95 (-11 per cent) year-on-year to £752 on average, according to Confused.com’s Q2 2018 car insurance price index powered by Willis Towers Watson.

According to the data, premiums in the Scottish Borders saw the smallest drop in all of the UK, with drivers paying £571 on average for car insurance, which is a six per cent (£37) decline on 12 months ago and the cheapest of all Scottish regions.

Central Scotland, the Highlands & Islands and East & North East followed with small-scale decreases, seeing premiums drop by no more than nine per cent (£58) year-on-year.

However, some areas haven’t escaped price hikes, as car insurance in the Scottish Highlands and Islands increased by one per cent (£5) in the past three months to £611 on average. This is the only region in the UK to have seen a price increase.

Other regions across Scotland saw small dents made to their average premiums, dropping just one per cent (£3) in the East and North East and one per cent (£8) in the Scottish Borders.

Central Scotland still the most expensive region in Scotland with motorists forking out a whopping £638, on average, for car insurance.

Amanda Stretton, motoring editor at Confused.com, says: “While car insurance premiums across Scotland seem to be dropping, they are doing so at a much slower rate than the rest of the UK, dropping £58 at most year-on-year, compared to the £95 drop the average UK driver will have seen.

“But despite price reductions, it’s clear these savings aren’t always being passed on to drivers. In fact, our research shows that renewing with the same insurer could add as much as £41 to car insurance prices for drivers in Scotland. This goes to show how important it is for drivers to be shopping around at the point of renewal to see the benefits of falling prices. Worryingly, three in five (60%) motorists in Scotland didn’t do this last time they came to renew.

“Our data suggests drivers should consider shopping around 21 days prior to their renewal date, when car insurance prices appear to be at their lowest. And if we still can’t beat the renewal price their current insurer is charging, we’ll give them the difference, plus £20.”