Car insurance costs soar nearly 20 per cent in 12 months

Car insurance costs soar nearly 20 per cent in 12 months
Car insurance costs soar nearly 20 per cent in 12 months

NEW figures show UK motorists have been hit by a near-20 per cent rise in insurance costs within the last year.

The average driver now pays £715 a year for fully comprehensive cover, up 19 per cent on the same time last year.

Website confused.com, revealed that car insurance price index is tracked quarterly and shows an annual trend.

After gradually dropping for several years from a high of £843 in 2011, insurance costs have been on the increase since the start of 2015. The latest figures, from the period beginning April to June 2016, show how costs have risen by 6 per cent since the start of the year, and drivers are paying an average of £115 more for their insurance than they were in the same period last year.

Northern Irish drivers have been hit the worst by the latest rises, with their premiums climbing 25 per cent year-on-year. They now face an average premium of £863. Also feeling the impact badly are motorists in parts of Scotland; the Highlands and Islands saw rises of 24 per cent, whilst drivers in the Hebrides were hit with a staggering 42 per cent annual increase.

Conversely, Orkney’s capital - Kirkwall - was one of only two places to see a drop in costs, with a quarterly fall of four per cent. Hereford, in the West Midlands, was the only other place to see a fall in quarterly premiums - down two per cent on the first three months of the year.

Although it is younger drivers who may face the highest premiums overall, they have actually escaped the worst of the rises. Drivers aged 17 saw an annual rise of just eight per cent - the lowest of any age bracket - but still face average premiums of £2,013. As opposed to the other end where 61-year-old drivers saw a 24 per cent rise - the highest of any age group - but still only pay £418 a year.

Furthermore the gender gap persists, with male drivers facing annual rises of 21 per cent in comparison with 18 per cent faced by women. This continued difference means the gap between the sexes is growing as men pay an average of £92 a year more - up from £27 in 2013.

Confused’s motoring editor, Amanda Stretton said, “We’ve not seen price rises of this magnitude for five years - a 19 per cent annual increase is substantial to say the least. And these price rises are being felt across the board, for drivers of all ages and genders, across all UK regions. If prices continues to rise at the rate we’ve been seeing, we could be facing the possibility of average comprehensive premiums reaching a high not seen since 2011.

“This, combined with rising fuel prices and increased motoring costs across the board, could result in a sizable dent in drivers’ pockets.”

Tom Dougherty.

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