The cost of car insurance has increased by 38.2 per cent over the last 12 months, but the rise in prices appears to be slowing, according to the latest Confused.com/EMB Car Insurance Price Index.
Our research shows that motorists were subjected to a 6.9 per cent increase in premiums in the final three months of 2010, down from rises of 14.2 per cent and 8.6 per cent in the second and third quarters of the year respectively.
Young drivers continue to be the hardest hit – with the average premium for a 17 to 20 year-old reaching £2,151 by December 2010, more than three times the overall average of £695.
It was 51 to 55 year-old males who faced the largest percentage increase this time round, though, with price hikes of 8.7 per cent over the final quarter of the year. Manchester and Merseyside was the region with the biggest rise, climbing an average of 11 per cent over the quarter – some way above the levels seen nationally.
Tax and fuel hikes give consumers double blow
The news comes off the back of recent increases in insurance premium tax, soaring fuel prices and a government investigation into the cost of car insurance, which we first told you about in November. Following our article, we heard from hundreds of you, all with different views on the problem of rising prices – take a look at just a few of your comments here.
Will Thomas, head of car insurance at Confused.com, said: “The investigation into insurance costs for young drivers is a clear sign that escalating costs and their implications are being taken seriously, but it seems there is no light at the end of the tunnel just yet. The rise in Insurance Premium Tax and rising fuel costs will continue to challenge people financially.”
How to fight against the increases
Thomas continued: “The only way for households to tackle spiralling costs is to make sure they are getting the best value, best fit policy. The easiest way to do this is to shop around.”
But there is more you can do, too. Take a look at our 8 ways to cut car insurance costs for more inspiration.
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