The cost of an average car insurance premium has risen by 46 per cent year-on-year, bringing further misery to hard-pressed motorists around the UK.
According to new data, the typical car insurance premium now stands at £892 in February 2023, rising by £279 in the last 12 months alone.
The 46 per cent jump in price has generally been put down to the rise in the cost of claims for insurers, with the number of claims rising to levels much higher than in the pandemic years.
High inflation rates have also impacted these areas, with repairs costing more, in addition to spare parts, energy and the cost of hiring specialist mechanics.
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The average cost of car insurance has dropped from a peak in November 2023
GETTY
The research, from Compare the Market, did note that there has been a month-on-month drop in motor insurance costs since November 2023 when prices peaked at £951.
Young drivers are forced to fork out the most, with those under the age of 25, seeing the largest annual increase in the cost of insurance.
The typical premium for motorists in this group has risen by £648 to a staggering £2,057 over the course of the last 12 months.
Julie Daniels, insurance expert at Compare the Market, said: “The rising cost of car insurance is understandably causing concern for many motorists.
“Our research shows motor premiums have jumped by more than £250 year-on-year.
“For those concerned about the cost of driving, shopping around ahead of renewal is one of the best ways to save money on car insurance.”
She called on motorists to avoid sticking with their existing car insurance provider as they may be able to get a better price with another insurer.
Data from Compare the Market found that drivers can save up to £578 on their car insurance when looking for policies on a comparison site.
Average cost of car insurance by a driver’s age (year-on-year)
16-24 - £2,057 – 46 per cent increase
25-34 – £924 – 47 per cent increase
35-44 – £706 – 39 per cent increase
45-54 – £559 – 43 per cent increase
55-64 – £438 – 45 per cent increase
65-79 – £419 – 47 per cent increase
80 and older – £680 – 46 per cent increase
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Drivers are being urged to check comparison websites to save money on their insurance
PA
In addition to switching providers for cheaper premiums, drivers can boost their chances of saving money in other ways.
This could include reducing their annual mileage, although this may be difficult for those who rely on their vehicles for employment or education.
If they have the ability to do so, paying their insurance costs in one lump sum would also allow them to avoid paying interest.