The cost of motoring continues to rise as the latest Confused.com car insurance price index reveals a year-on-year price increase of 16%.
Car insurance prices have gone up £110 over the past year – a rise of 16%. This means the average driver now pays £781 per year for his or her premium.
That’s according to the first Confused.com car insurance price index of 2017.
Further price hikes on the way?
The price index began in 2006 and is published every three months.
The latest rise takes average costs during the first three months of the year just £77 shy of the £858 high recorded in the second quarter of 2011.
What’s more, extra pressures set to impact the insurance industry this year could possibly push prices even higher – potentially tipping the thousand-pound mark next year, the index suggests.
This includes the Ogden rate cut, which will see insurers paying out more for personal injury claims, as well as an increase in insurance premium tax in June.
Male drivers pay more than females
Looking at the data in more depth shows men tend to pay more than women for their car insurance.
The average premium of a male driver comes to £824 – £96 more than female drivers who can expect to pay £728.
This is despite an EU gender directive which states that gender cannot be taken into account when calculating car insurance prices.
Across the UK, increases can be seen in most areas, with no region escaping an annual price hike.
Prices up 21% in Scotland
Scotland has been hit particularly hard by price rises over the past 12 months. Average costs in the Scottish Highlands and Islands region, for example, have gone up 21% – or £102 – over the past year to £594.
However, drivers in much of Scotland still tend to pay less than the national average for car insurance.
For example – at £547 – those in the Borders region pay the least for their premiums in the whole of the UK.
This is £713 less than drivers in Inner London generally pay, which at £1,260 for a typical car insurance premium is the most expensive region in the UK.
Price rises seen across the UK
Around the rest of the country it’s a similar story. Prices in North-West England have risen 18% over the past year, taking average premiums to £797.
Prices in North-East England have gone up 16% to £693. And in South Wales and the South-West prices have risen 16% (to £720) – and 15% (to £553) – respectively.
Only the Central and North region of Wales has seen a particularly modest yearly increase in car insurance costs. Here prices have climbed 11% to £619.
Motorists urged to shop around
Amanda Stretton, motoring editor at Confused.com, says: “Drivers across the UK are seeing car insurance prices accelerate and there seems to be no sign of slowing.
“Thankfully, insurers are now required to show drivers their premium from the previous year at point of renewal.
“So being able to compare the amount they paid in the previous year and armed with the knowledge that prices are rising across the board, motorists should be more inclined to shop around.
“To get the best deal drivers should take note of their renewal price and get a quote through a car savings site, such as Confused.com, to see if they can get a cheaper car insurance premium elsewhere.”