CAR insurance premiums are surging back up, according to new research.
The price comparison site Confused.com said the average cost of insuring a car had leapt seven per cent over the last year, more than three times the rate of inflation.
That means the average bill is £681, £36 less than its peak and half the level of Britain’s most expensive, Central London. Drivers in east and north-east Scotland pay less, an average of £601
Louise O’Shea, CEO at Confused.com said: “We hate to be the bearer of bad news but it seems car insurance prices are really starting to accelerate. In fact, we’re seeing some of the steepest price hikes in 18 months.
“We should be shopping around for the best deal, whether we’re a new driver or renewing for the tenth year, as there’s always another insurer out there willing to offer us a better deal.
At Confused.com, we’re so certain drivers will be able to find a better price than their current insurer, that we’re offering to beat their renewal quote, or give them the difference, plus £20
The firm crunched six million quotes through its search engine to discover average price of car insurance in the UK increased by five per cent year-on-year to £789 for their car insurance.
Further research from Confused.com finds drivers who received their renewal notice this quarter saw their price increase by £50, on average.
There had been a brief respite in what has been a relentless rise rise in the cost of insurance over the last decade.
Drivers with many years of experience may feel particularly disheartened by these increases, the company said. In particular, motorists aged 49 are now paying £289 more than they were when they were 39, on average. And it certainly does not get better with age, as those aged 71 and over now are paying £201 more than 10 years ago, when they were aged 61.
Confused.com polled drivers and found more than a quarter did not understand why their premiums were rising. Prices are rising faster for women than for men.
Other motoring costs, however, are easing. Fuel, in particular, has dropped slightly, following a sharp increase earlier this year. Since May, the average price of petrol has dropped by 5p per litre, while diesel prices slump by 2p.
Prices for electric vehicles are falling too.
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