Car insurance prices have soared by £284 in just 12 months in a blow to motorists. The average cost of car insurance is now £941, after increasing by £284 (43 percent) in the past 12 months amid the Cost of Living crisis, research has found.
Prices have stalled somewhat in the first 3 months of the year, with premiums now £54 cheaper compared to the end of 2023. Even drivers who would expect to pay less due to building up a no claims bonus are paying more now than they were 5 years ago. In particular, 22-year-olds are paying £667 more than the price they were paying when they were 17, despite gaining more driving experience.
Further research shows 3 in 4 (75%) drivers received a higher renewal price in the past 3 months of £94, on average. However, it pays to switch, as those who shopped around using a price comparison site saved £90, on average.
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Louise Thomas, motoring expert at Confused.com car insurance said: “For the first time in a while car insurance prices have stalled slightly for most drivers, and this may come as a relief. However, prices are still incredibly high and so people can expect to see their price increase compared to the previous year.
“The important thing to remember is that you don’t have to accept your renewal, especially as we know from our research that shopping around can find you a cheaper price. And on top of this, there are additional ways you can save as well. Choosing a higher voluntary excess can bring down your overall premium – but remember to only choose a price you can afford should you need to make a claim.
“And if you can, paying annually will save you money too, as monthly payments can incur an interest charge. If these aren’t viable options, things like increasing your security or reviewing your mileage to be more accurate could make a difference when quoting.”
