Advice Direct Scotland comment on surge in car insurance premiums for Scots

Glasgow, Scotland – April 15, 2024:

Scottish motorists face some of the biggest car insurance hikes in the UK, which risk pushing them further into debt, Advice Direct Scotland (ADS) has said.

ADS, which runs the moneyadvice.scot service, warned of the additional burden on households, with drivers seeing premiums rise by nearly two-thirds.

ADS is urging motorists not to opt for automatic insurance policy renewals and to shop around for potentially better deals.

The average quoted price of car insurance jumped by 61.9 per cent in the year to February, according to insights firm Consumer Intelligence.

This was the highest increase outside London, which recorded a 64.8 per cent increase.

The average for the whole of the UK jumped by 56.4 per cent, with drivers most commonly receiving a quote between £500 and £749.

Advice Direct Scotland has seen an increase in debt-related inquiries as the cost-of-living crisis continues to take its toll on family budgets.

It has highlighted rising premiums could add to the strain and also put additional pressure on those with a formal Debt Arrangement Scheme (DAS).

Those worried about debts can seek support from moneyadvice.scot, which is regulated by the Financial Conduct Authority (FCA).

Specialist advisers are available to help anyone in Scotland assess their current situation, look at their income and outgoings, and consider what to do next. This includes assessing that people are receiving all the benefits they are entitled to.

The free service can be contacted via the website www.moneyadvice.scot or on 0808 196 2316.

John Baird, Head of Debt Services at Advice Direct Scotland, said:

“With the cost-of-living crisis far from over, we know many households are already anxious about their bills.

“Any rise in insurance premiums will add to the day-to-day expense of owning and maintaining a car, leaving more people at risk of falling into debt.

“Such increases can also have a significant impact on those who are already struggling to make ends meet.

“For those enrolled in Debt Arrangement Schemes, which require completing formal income and expenditure forms, an abrupt surge in car insurance costs could further strain their financial stability.

“In the worst-case scenario, it could jeopardise the sustainability of their debt management.

“We would encourage people not to opt for automatic policy renewals on insurance renewals, and check for any better options available.

“Though it’s important to remember that when changing policies or searching for alternatives, make sure to review and update your privacy preferences when completing online forms.

“Nobody should struggle alone, and our specialist debt advisers can work with you to assess your current situation, review your income and expenses, and explore your options moving forward.

“Anyone concerned about their ability to pay their bills, should reach out to moneyadvice.scot for advice, information, and support.”

NOTES

moneyadvice.scot includes a knowledge centre and live chat at www.moneyadvice.scot. The free service can also be contacted on 0808 196 2316 between 9am and 5pm, Monday to Friday. 

It provides free information and support on a wide range of debt-related issues and is authorised and regulated by the Financial Conduct Authority (FCA). Specialist debt advisers can work with people to assess their current situation, look at their income and outgoings, and consider what to do next. Approximately half a million people across Scotland are not claiming the financial support they are entitled to.