Car insurance premiums ‘likely to keep increasing’ in dramatic warning to hard-pressed drivers
Prices have increased by a staggering £338 in the last 12 months alone
GETTY
Drivers are being warned that car insurance costs could continue to rise over the coming months and years, with one expert describing the prices as “painful”.
The latest data shows that car insurance costs have reached their highest level on record, soaring to £924 for the average annual coverage.
Prices have increased by a staggering £338 or 58 per cent in the last 12 months alone, with many motorists struggling to afford the rising costs.
Car insurers are paying out around £1.10 in claims for every £1 they charge in premiums, requiring them to put costs up to ensure they stay afloat.
WATCH NOW: Car insurance prices continue to soar
As a result of the soaring repair costs and rising number of claims, drivers will be continue to be hammered with “big increases”.
Speaking to GB News, Kevin Pratt, car insurance expert at Forbes Advisor, warned motorists that rising policy prices could continue.
He said: "The price of car insurance is being driven up by inflation - it's costing more to get cars repaired, and these costs are being passed on to drivers.
“But even if the rate of inflation in the wider economy falls further in the coming months, premiums are likely to keep increasing.
“That's because today's cars are full of expensive sensors and systems managed by computer chips which are in short supply.”
If cars are off the road for longer because repair jobs are more complicated, Pratt said insurers would need to pay more for courtesy cars.
This further increases prices for the insurers, with companies passing on the cost directly to drivers.
He stated that insurance companies also have their own costs, namely salaries, energy bills and rent.
Kevin Pratt said these factors are causing the car insurance price hikes, describing them as “painful”.
He added: "Longer term - we're talking several years - we should see premiums stabilise and reduce because of the increased use of safety features such as automatic emergency braking and other forms of self-driving functionality.
“The vast majority of car accidents are caused by human error, so if you can eliminate this, you don't need to charge as much for insurance."
Drivers in London will be hit hardest by the price rises, with the average coverage costing more than £1,500 – an increase of £567.
Even motorists in Greater London are being hammered by large costs, with average prices soaring by 60 per cent and nearing £1,200.
Some young drivers may be forced off the road with costs reaching £2,995 for 18-year-olds, which may be more expensive than the value of people’s vehicles.
LATEST DEVELOPMENTS:
Drivers in London will be the hardest hit when it comes to car insurance prices
PA
The latest data has also shown that drivers under the age of 38 are now likely to have insurance prices of £1,000 or more.