MOTORISTS in Oldham are paying more for their car insurance than in any other town in Greater Manchester.

The average price of insuring a car is now £1,103 following a 12 per cent (one per cent over three months), according to data released by the price comparison website Confused.com.

The cost of car insurance in Manchester and Merseyside, meanwhile, increased by three per cent – equivalent to £31 in three months, with motorists in the region now paying £995 on average.

Although motorists in Oldham are feeling the pinch, their increase is not the biggest in the region. Car insurance prices in Bolton rose by £45, up four per cent compared to three months ago.

Motorists in Oldham will be feeling the pinch of these increases in particular, as it is revealed to be the most expensive area in Manchester and Merseyside for car insurance.

However, local drivers have not sustained the biggest increase in prices in the region, as the cost of car insurance in Bolton increased by £45 (up four per cent) compared to three months ago, on average.

The Confused.com research comes in the wake of investigations by the Financial Conduct Authority (FCA)() and Competition and Markets Authority (CMA)3), which are unveiling “loyalty penalties” being charged to customers who choose to stay with the same provider, rather than shopping around.

And with the post-Christmas pinch beginning to tighten and the UK in a period of economic uncertainty, Confused.com is urging drivers to check their renewal price and shop around to find a better deal.

Amanda Stretton, motoring editor at Confused.com comments: “Car insurance prices are gathering momentum and have increased in Manchester and Merseyside for the second quarter running – and this quarter we have seen prices rise at a much faster pace.

“This is the last thing drivers need as they face the post-Christmas pinch and as the UK enters a period of economic uncertainty due to Brexit.

“If there’s a time to re-think and refresh your finances, it’s now. A recent investigation by the CMA revealed customers who stick with the same supplier for household services are facing a combined ‘loyalty penalty’ of £4.1bn a year. And with an impending FCA investigation into ‘hidden’ discrimination between car insurance customers on the horizon, the loyalty penalty issue appears to be wider than we first thought.”