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Car insurance costs soar by 9.3%

Car insurance costs soar by 9.3%

Category: Car insurance
22/03/2018

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Car insurance premiums rarely show signs of falling these days, and latest research from Consumer Intelligence shows that the upwards march is only continuing, with average premiums having risen by a whopping 9.3% in the past year.

What's more, it's the over-50s who've seen the biggest rise in premium costs, despite paying the lowest amount overall – premiums for this age group rose by 10.9% in the year to November, and by 34% in the past three years, yet they still only pay an average of £398.

This is compared with those aged 25-49, who've seen average premiums rise by 9.5% in the last year and by 24.4% in the last three, now standing at an average of £636. Perhaps surprisingly, younger drivers have seen their polices rise by a far lesser amount, yet they still pay the most overall: those aged 21-25 have seen their premiums rise by 7.1% in the last year and by just 2.9% over the last three, to an average of £1,190.

The last few months have seen premiums rise particularly rapidly, too – premiums across the market rose by 2.7% in the three months to November – and thanks to yet another Insurance Premium Tax hike being on the cards for June, these price rises show no signs of stopping.

"Car insurance premiums continue to accelerate and the year ahead is certain to bring more rises as Insurance Premium Tax is increased yet again," said Ian Hughes, chief executive of Consumer Intelligence.

"IPT will have doubled in less than two years, hammering motorists who have no choice about whether or not to insure their vehicle. They can however choose their insurer and everyone should be shopping around to at least limit price rises."

What next?

Don't put up with price hikes – if it's time to renew your car insurance policy, compare alternatives to see if you can get a better deal.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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