Car insurance premiums accelerating

The cost of motor insurance is continuing to rise. Over the last 12 months, prices have increased by 14% – equivalent to £95 – on average.

This means a driver can now expect to pay £767 for a typical comprehensive car insurance policy – the costliest amount since mid-2012 when the average premium stood at £797.

According to the latest Confused.com car insurance price index, powered by Willis Towers Watson, some motorists have been hit harder than others.

In particular, older drivers continue to see the greatest increases. Comprehensive premiums have never been higher for many drivers in their sixties and seventies – those aged 62 (£481), 63 (£494), 64 (£450), 68 (£515), and 71+ (£495), for example, are all experiencing their highest premiums ever. And at 10%, drivers aged 71+ have seen their biggest ever quarterly increase.

Meanwhile, despite teenage drivers only paying between 56% and 75% of their maximum ever premiums, the cost of car insurance for younger drivers remains, by comparison, eye-wateringly high.

Average premiums for people aged 26 and under are all over £1,000. And, after 18 months of 18-year-old drivers typically paying the highest premiums, it’s the nation’s youngest drivers, those aged 17, who now pay the most (£2,112).

Motorists aged 60 and over, by contrast, can still typically expect to pay less than £500 (the exception being those aged 68 who pay £515 on average).

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 year-on-year) respectively.

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

“With the average premium standing at £767, the cost of car insurance hasn’t been this high for over four and half years. What’s more, as prices continue to climb, it seems only a matter of time before we’re back at the £858 peak we saw in 2011.”

The post Car insurance premiums accelerating appeared first on Automotive Blog.

from Automotive Blog http://www.automotiveblog.co.uk/2017/01/car-insurance-premiums-accelerating/
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