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Adam Jolley

Car insurance costs rise by £109


The cost of motoring continues to rise as the latest car insurance price index reveals a year-on-year price increase of 17%.

White car on money

Motorists are facing a steep climb in the cost of car insurance, according to the latest car insurance price index powered by Willis Towers Watson. 

Over the last 12 months, prices have rocketed by 17% - equivalent to £109 - on average. This means a driver can now expect to pay £737 for a typical comprehensive car insurance policy.

Coupled with hikes in insurance premium tax, which is up to 10% from 6% this time last year, and rising fuel prices, and it’s likely that many motorists will be feeling the pinch when it comes to the cost of owning and running a car. 

In particular, older drivers continue to bear the brunt of the biggest increases. 

66-year-old drivers see 28% price rise

66-year-olds, whose average premium stands at £434, have seen the largest yearly rise and can now expect to pay 28% more for cover than 12 months ago. 

By comparison, 17-year-old, have experienced the smallest year-on-year price increases of any age group at just 9% - their average premium now stands at £2,083.

18-year-old drivers have the dubious honour of paying the most for car insurance of any age – their average annual premium comes to £2,106. 

At the opposite end of the scale, 69-year-olds pay the cheapest premiums at £413 on average, £1,693 less than a typical 18-year-old driver.

Gender price gap widens to £98

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

However, males have seen prices creep up slightly more than their female counterparts, by 19% (+£124 year-on-year) and 15% (+£90 year-on-year) respectively. 

As a result, the average man’s premium now stands at £781, while for women it is £683. 

There is now a difference of £98 between the sexes. By comparison, this time three years ago (the third quarter of 2013) the gender price divide stood at just £30, with men still paying more on average. 

Londoners pay the highest premiums in the UK

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

But it’s motorists in the Borders region of Scotland that have really drawn the short straw. 

They’ve seen their car insurance premiums increase by 23% year-on-year and 9% quarter-on-quarter – both the highest annual and quarterly increases of any region. 

Drivers in this area can take some comfort, however, in the fact their average premium - at £520 - is still the least expensive of any region. 

This is in stark contrast with drivers in the capital, who typically pay the most for their car insurance, with eight out of 10 of the most expensive postcode areas in the UK all falling within the Greater London area. 

The average premium of a motorist in Inner London, for example, is £1,193 - the highest of any region in the UK.

‘Crucial that drivers seek to reduce the cost of motoring’

Amanda Stretton, motoring editor at says: “With the average comprehensive car insurance premium up a staggering 17% annually, many cash-strapped car owners will no doubt wish they could slam on the brakes on the escalating cost of motoring.

“Drivers are now paying £65 more on average for their car insurance than at the start of 2016, and £109 more than this time last year, bringing the £737 average premium ever closer to the £858 peak we saw in 2011.

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

“As ever, our advice to all motorists is to shop around using a site such as, which can help drivers save on their car insurance; find the best finance deals; and slash running costs with our handy tools, tips and guides.”


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