Average car insurance cost in UK soars to record high

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The common cost of car insurance in the UK has hit a record high of practically £1,000 after premiums skyrocketed by 58 per cent in a 12 months, evaluation suggests.

The value of insuring a car has soared on common by £338 over the previous 12 months to hit £924, in accordance to the Confused.com value index, which the comparability website says relies on greater than six million quotes every quarter.

The Independent revealed in August that motor insurance was quick turning into one of the crucial costly family payments, including extra monetary ache at a time of high inflation and surging mortgage charges and rents.

Exclusive information from analyst Consumer Intelligence had revealed that premiums rose by 48 per cent in the 12 months to June to hit their highest since 2018, as tens of 1000’s of drivers both elevated the surplus on their insurance policies or switched to third-party-only cowl in a determined bid to lower prices.

But the most recent information suggests costs have now risen much more sharply, with premiums hovering by a median of 19 per cent (£148) in the newest quarter alone.

While charges rose throughout the UK, these residing in internal London have been worst affected, with value rises of 61 per cent (£567) bringing common premiums in the capital to greater than £1,500.

Outside of London, drivers in Manchester, Merseyside and the West Midlands noticed a number of the steepest will increase, the place motorists are actually paying greater than £1,100 on common for canopy.

The value will increase are much more stark when calculated by age – with 18-year-olds now paying a median of £2,995 after their premiums soared 89 per cent in the previous 12 months to add £1,414 to the common invoice.

On common, drivers can not discover car insurance costing lower than £1,000 till they’re 38 years previous, in accordance to the index.

While costs fell throughout the pandemic, they’ve risen as folks returned to regular driving habits, whereas the worth of each secondhand automobiles and new electrical autos have additionally risen, with the latter that includes extra superior techology – fuelling greater restore prices, additional exacerbated by provide chain points.

“For another consecutive quarter, we’ve seen some of the highest inflation rates when it comes to car insurance,” mentioned Louise Thomas, a car insurance professional at Confused.com, including: “Those who haven’t yet been affected should be wary of how pricing may affect them at their next renewal.”