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The average cost of car insurance in the UK has hit a record high of nearly £1,000 after premiums skyrocketed by 58 per cent in a year, analysis suggests.
The price of insuring a car has soared on average by £338 over the past 12 months to hit £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 motor insurance was fast becoming one of the most expensive household bills, adding more financial pain at a time of high inflation and surging mortgage rates and rents.
Exclusive data from analyst Consumer Intelligence had revealed that premiums rose by 48 per cent in the year to June to hit their highest since 2018, as tens of thousands of drivers either increased the excess on their policies or switched to third-party-only cover in a desperate bid to cut costs.
But the latest data suggests prices have now risen even more sharply, with premiums soaring by an average of 19 per cent (£148) in the most recent quarter alone.
While rates rose across the UK, those living in inner London were worst affected, with price rises of 61 per cent (£567) bringing average premiums in the capital to more than £1,500.
Outside of London, drivers in Manchester, Merseyside and the West Midlands saw some of the steepest increases, where motorists are now paying more than £1,100 on average for cover.
The price increases are even more stark when calculated by age – with 18-year-olds now paying an average of £2,995 after their premiums soared 89 per cent in the past 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 years old, according to the index.
While prices fell during the pandemic, they have risen as people returned to normal driving habits, while the value of both secondhand cars and new electric vehicles have also risen, with the latter featuring more advanced techology – fuelling higher repair costs, further exacerbated by supply chain issues.
“For another consecutive quarter, we’ve seen some of the highest inflation rates when it comes to car insurance,” said Louise Thomas, a car insurance expert at Confused.com, adding: “Those who haven’t yet been affected should be wary of how pricing may affect them at their next renewal.”
