New figures have shown that over the last 12 months, car insurance premiums have risen by £115 on average, driven by insurance companies looking to increase profits.
Reports from Confused.com’s price index show that this time last year, drivers paid £600 on average, for a comprehensive car insurance policy. However, drivers this year face an average price of £715 for their insurance.
The average cost of car insurance dropped gradually between 2011 and 2014, but since then it has been on the rise again. Despite this, the average price remains well below the record-high experienced in 2011, of £858.
Drivers over the age of 61 years saw an increase of 24 per cent on average, going up to £418, which is still considered relatively low.
Despite seeing the lowest percentage increase of all age groups – of 8 per cent – young drivers pay the highest car insurance price, which now stands at more than £2,000 on average.
Out of all regions, drivers in London were found to face the highest insurance premiums, at £1,149 on average, £449 more than the average across the country, and up significantly from last year.
Amanda Stretton, motoring editor from Confused.com, said that the main reason for insurance prices rising is due to insurers not making strong profits like they used to.
Ms Stretton said: “Insurance companies are still not making a profit. The most recent figures show that, for every £1 that an insurance company takes in premium, its costs are more than £1.01.
“We saw a similar increase in premiums at the end of 2009 through to the beginning of 2010 and it continued at even greater rate until mid-2011, when we started to see the decrease.”