New research shows that the average car insurance premium has risen by £90 to around £666 a year.
This represents an increase of around 15 per cent when compared to the average price a year ago, and is five times the rate of inflation in May.
John Blevins, a pricing expert at a research consultancy, says that premiums will continue to rise as these figures did not include the full impact of the rise in the rate of insurance premium tax (IPT) which came into force earlier this month.
Blevins advised drivers to shop around in order to reduce the impact of these price rises.
Insurance for many things, including homes, cars and pets, will all be affected by the rise in IPT, with its rate increasing from 10 per cent to 12 percent.
The latest rise means that the rate of tax being paid on insurance policies has doubled in just under two years, as the rate was just 6 per cent in 2015.
Consumer Intelligence worked out average car insurance premiums by comparing premiums offered to 3,250 people using price comparison websites and direct insurers.
The tax rise will see drivers aged between 21 and 24 paying the highest amounts, with an average of £1,202; however, they have seen the lowest premium increases at 13.1 per cent.
The largest price rises will be felt by motorists over 50 as their premiums are set to increase by 17.9 per cent, although they will be expected to pay less than the
majority of motorists with premiums around £418.
People living in London are also expected to be hit hard as those in the capital are paying the largest amount for cover at around £1,000, just over double the average of £474 for cover in Scotland and the South-West.
GBP90 rise in car insurance premiums in the last year
Fri, 23 Jun 2017
Share this article:
- Car insurance
- Pet insurance
- Car insurance premiums for Direct Line customers rise nearly 7 per cent
- UK car insurance premiums rose 8 per cent in the past year
- Car insurance premiums rise by GBP110
- Car insurance premiums more expensive than ever says ABI
- Car insurance premiums on the rise again
- Car insurance premiums rise 19 per cent in past year
- Online insurance firm esure set to push up its car insurance premiums
Latest Insurance News
|Car insurance premiums hit record levels - Tue, 25 Jul 2017|
|Car insurance premiums rising at fastest ever rate - Tue, 18 Jul 2017|
|Car insurance premiums soar 20 per cent in last two years - Thu, 06 Jul 2017|