The average cost of car insurance in the UK has hit a record high of almost £1,000 after premiums soared by 58 per cent in a year, analysis suggests.
The price of insuring a car has soared by an average of £338 over the past 12 months to £924, according to the Confused.com price index, which the comparison site says is based on more than six million quotes each quarter.
The independent revealed in August that auto insurance was quickly becoming one of the most expensive household bills, adding to the financial burden at a time of high inflation and rising mortgage rates and rents.
Exclusive data from analyst Consumer Intelligence revealed that premiums rose 48 percent in the year to June, hitting their highest level since 2018, as tens of thousands of drivers increased the excess on their policies or switched to exclusive third-party coverage in a desperate attempt to cut costs.
But the latest data suggests prices have now risen even more sharply, with premiums rising by an average of 19 per cent (£148) in the most recent quarter alone.
While rates rose across the UK, those living in central London were hardest hit, with price increases of 61 per cent (£567), pushing average premiums in the capital to more than £1,500. pounds sterling.
Outside London, drivers in Manchester, Merseyside and the West Midlands experienced some of the steepest increases, with drivers now paying more than £1,100 on average for cover.
Price increases are even starker when calculated by age: 18-year-olds now pay an average of £2,995 after their premiums soared 89 per cent last year to add £1,414 to the average bill.
Car insurance costs are highest for those living in London, Manchester, Merseyside and the West Midlands.
(Getty Images/iStockphoto)
On average, drivers can no longer find car insurance costing less than £1,000 until they are 38, according to the index.
While prices fell during the pandemic, they have risen as people returned to their normal driving habits, while the value of both second-hand cars and new electric vehicles has also risen, with the latter boasting more advanced technology, resulting in higher repair costs, further exacerbated by supply. chain problems.
“For another quarter in a row, we've seen some of the highest inflation rates when it comes to auto insurance,” said Louise Thomas, auto insurance expert at Confused.com, adding: “Those who haven't yet have been affected should be wary of how prices may affect them in their next renewal.”
