Car insurance premiums increased by £110 on average last year a comparison site has revealed.
Sadly, the hikes don’t seem to be stopping anytime soon with next year predicted to be an all time high
According to Confused.com, annual insurance costs increased by around 16 per cent last year. The increase was caused by more expensive repairs and government changes to the Ogden rate cut which will see insurers paying out more for person injury claims.
As a result drivers can expect to pay £781 for a typical comprehensive car insurance policy.
Confused.com added that drivers could experience an average premium increase over £1,000 next year – a record high.
Amanda Stretton, motoring editor at Confused.com said: “Drivers across the UK are seeing car insurance prices accelerate and there seems to be no signs of slowing.”
Stretton added: “To get the best deal drivers should take note of their renewal price and run a quote through a car savings site, such as Confused.com, to see if they can get a cheaper car insurance premium elsewhere.”
Motorists are now paying just £77 less than the highest ever average premium at £858 in 2011.
The report found that all drivers are experiencing an increase in their car insurance premiums but some motorists are suffering more than others.
Confused.com found that 66-year-olds were hit with the largest annual percentage rise in their car insurance. They can expect to pay 23 per cent more for cover compared to last year. The average premium for 66-year-olds currently stands at £447.
Drivers in Scotland have been hit by the highest annual price hike. The premiums in Scotland increased by 21 per cent compared to last year. This equates to £102 and means on average drivers paid £594 for their car insurance premiums.
The annual rise in car insurance premiums has hit men and women. Male drivers saw their care insurance prices increase by 17 per cent but female drivers had a 16 per cent increase.
The Confused.com car insurance price index launched in 2006 and is the most comprehensive analysis of car insurance pricing in the UK. It is published every three months and looks at over four million car insurance quotes.