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Adam Jolley

Car insurance costs rise by £95

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The cost of motoring continues to rise as the latest Confused.com car insurance price index reveals a year-on-year price increase of 14%.

White car on money

The average annual car insurance policy has increased by 14% - equivalent to a £95 rise - over the past 12 months, and now stands at £767.

That’s according to the latest Confused.com car insurance price index powered by Willis Towers Watson. 

This is the costliest amount since mid-2012 when the average premium stood at £797.

Older drivers bear the brunt of price hikes

In particular, older drivers continue to see the greatest increases, with premiums having never been higher for many drivers in their sixties and seventies.

But despite such rises, it’s the cost of car insurance for younger drivers that remains, by comparison, eye-wateringly high. 

Average premiums for people aged 26 and under are all over £1,000. Worse still,  those aged 17 now pay the most of any age group for their car insurance - £2,112. 

The majority of motorists aged 60 and over, by contrast, can still typically expect to pay less than £500.

Gender gap widens to over £100

Both male and female drivers have seen their premiums rise substantially over the last 12 months. 

However, males have seen prices accelerate more than their female counterparts, climbing by 15% (+£104 year-on-year) and 13% (+£84) respectively. 

As a result, the average man’s premium now stands at £812, while for women it’s £711 - a difference of £101 between the sexes. 

This is the first time the £100 barrier has been broken since EU rules came into force in 2012 banning insurance companies from taking gender in to account when calculating premiums.

Scotish regions experiences price rises of up to 20%

Looking across the UK, increases in premiums can be felt in most areas, with no region escaping an annual price hike. 

In particular, motorists in Scotland have faced the highest percentage rises over the past 12 months. 

Those in the East & North East and the Highlands & Islands regions, for example, have seen the average cost of their car insurance go up by 20% year-on-year. Their premiums now stand at £563 and £589 respectively – the highest annual rise of any UK region. 

Meanwhile, motorists in the English capital still tend to pay the most for car insurance of all UK regions. 

People in the Inner London region pay the most of all. Their average annual fully comprehensive policy stands at £1,237, up £152 from the same period the previous year. 

Across the UK’s other capital cities, drivers in Cardiff can expect to pay £714 on average, up 14% from the same time last year. Those in Edinburgh can expect to pay around half that of a London motorist - £558, up 12%.

‘Car insurance not this high for four and half years’

Amanda Stretton, motoring editor at Confused.com, says: “Drivers are now paying £95 more on average for an annual comprehensive car insurance policy than they did during the same period in 2015. 

“With the average premium standing at £767, the cost of car insurance hasn’t been this high for over four and half years.

“These rising prices make it crucial that drivers seek to reduce the cost of motoring wherever they can.” 

While the price index tends to focus on fully comprehensive car insurance policies, third party fire & theft (TPFT) premiums have increased too and have, in fact, never been higher.

The average TPFT policy now stands at £1,311, up 15% year-on-year and 5% quarter-on-quarter. 

Drivers interested in TPFT cover "may want to get quotes for fully comprehensive policies too as in some cases it may work out cheaper," Stretton adds.

 

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