According to recent data, the average cost of car insurance in the UK has reached nearly £1,000 due to a surge of over 50% in prices last year, setting a new record high.
According to the most recent index released by the price comparison website Confused.com, drivers in the UK can anticipate paying an average of £995 for their car insurance – the highest amount ever.
In the past year, the cost of car insurance significantly increased, causing affordability issues for numerous individuals, especially those who have filed claims in the recent past. According to Confused.com, prices went up by an average of £366 (equivalent to 58%) within the last 12 months.
The significant increase in the price of automobile insurance has been a major contributor to inflation, reaching a record high last year. According to recent data, 75% of drivers who renewed their policy in the past three months experienced an increase in their premiums, with some cases reporting a rise of almost 90%.
According to data from Confused.com, drivers between the ages of 17 and 20 have experienced a 100% increase in their insurance premiums over the last year, with prices rising from an average of £1,423 to £2,877. This information was gathered by analyzing over 6 million car insurance quotes and taking the average of the five most affordable rates, in partnership with data firm WTW.
According to the study, 18-year-olds are now paying over £3,000 for car insurance, which is an 84% increase compared to previous prices. The study also found that drivers up to the age of 43 can expect to pay an average of £1,000 or more for their car insurance.
The most costly area for car insurance in the UK is still London. On average, drivers in inner London pay £1,607 and those in outer London pay £1,291.
In Northern Ireland, drivers are now paying over £1,000 for their insurance, a first in history. The cost of premiums in central Scotland has risen by 64% or £350, resulting in a doubling of insurance rates to £897 per year within a span of two years.
In November, Direct Line informed financial analysts that their premiums had risen by 37%. In August, Admiral revealed a 20% price increase in the first half of the year due to inflation and repair expenses.
Ignore the advertisement for the newsletter.
after newsletter promotion
Louise Thomas, a motoring expert at Confused.com, said: “Like a lot of our expenses, car insurance is getting more costly. And this is likely to be the case for some time. Claiming is one of the biggest factors when it comes to insurers pricing up policies. And with the cost of paying out for claims being considerably high, insurance prices are going to be too.”
She stated: “Although it appears that [premium] rate hikes may be decreasing at the moment, it is still important for us to take steps to minimize these costs. Implementing measures such as improving security, evaluating your mileage, or adjusting your deductible could potentially lower your overall expenses. Ultimately, comparing prices from different providers is the only way to ensure you are getting the best possible price.”
Source: theguardian.com
