Car insurance premium prices are now £100 more expensive than they were this time last year, reveals a new report
This is an increase of 14 per cent in the space of 12 months, as premiums continue to rocket.
On average, UK drivers are now paying £838 for their car insurance, reveals Confused.com’s Q3 2017 car insurance price index.
This time last year, drivers were paying £737 for their premium, which reveals the growing extent of the problem.
Prices for car insurance have increased by 65 per cent over the past decade and look to still be increasing towards the end of the year and into 2018 to new record highs.
Despite the astronomical rise, drivers received a fleeting moment of relief as prices steadied over the last quarter.
In fact prices dropped by one per cent after the Ogden rate was to be readjusted.
Earlier this year prices shot up due to an increase in Insurance Premium Tax along with adjustments to the Ogden rate.
Male drivers are still getting slapped with higher premiums than women – seeing a £109 increase compared to their £91.
It’s no wonder drivers are dreading their next renewal date
Older drivers aged between 57 and 61 years old and between 66 and 69 are now paying more for their premiums than ever before.
61 year olds saw the biggest annual and quarterly increase of any age bracket, ramping up by a whopping 23% (£100) year-on-year and 6% (£33) over the last three months.
In terms of biggest increase in money, 21 years olds were hit the hardest with them now paying £279 more (19 per cent) compared to this time last year.
Car insurance prices £100 more expensive in the UK now compared to this time last year
It’s not just insurance costs which are hurting motorist’s pockets though with drivers also paying more for fuel than they did last year.
Research from 83 per cent of UK’s fuel stations drivers are now paying 119.1p for petrol and 120.5p for diesel, on average.
This means that the average driver of a medium-sized car is now paying £67.89 for a full tank of petrol and £68.69 to fill up with diesel.
Experts believe that, much like with car insurance, fuel prices are also likely to increase over the coming months.
Amanda Stretton, motoring editor at Confused.com, says: “With car insurance costs rising by 65% over the last decade and 14% in the last year it’s no wonder drivers are dreading their next renewal date.
“The dramatic Ogden rate cut from 2.5% to -0.75% in February 2017 sparked a surge of car insurance price hikes across the UK, in an already inflating market, as insurers braced themselves to pay out more for personal injury claims1.
“A recent (September 2017) government announcement regarding the way rates are set could increase the rate up to 1%.
Older drivers are among the worst affected by the changes
“This means insurers have been able to calm their pricing slightly this quarter. Even so, we expect this will be short lived given that prices have already started to rise again in September.
“Worryingly, there is every possibility that car insurance prices will be the most expensive on record during the first half of next year.
“Luckily, insurers are required to show drivers what they paid for their car insurance last year at point of renewal.
“Drivers wanting to make savings should take note of their renewal price and take a few minutes to get a comparable quote online at Confused.com, where they could save up to £289.”