The cost of an average insurance premium has risen by more than £200 to an average of £743 in June, according to new research.
It’s a 39 per cent increase on June 2022, while the average premium for young drivers aged under 24 has soared by £510 to £1,640 in the last 12 months. In contrast, car insurance remains the lowest for drivers aged 65 to 79 at £343. The average premium for this age group has still risen by up to £89 for this age group, however.
Those in London have experienced the biggest rise in insurance costs out of all the regions in the UK. It has increased to £1,165 following a rise of £368 or 46 per cent in the last 12 months. Motorists in the south-west of England, however, have the lowest average premium at £527, though this has still risen by more than £120 in the last 12 months.
Compare the Market, who compiled the results, says that the cost of car insurance has soared due to repair cost inflation, with insurers paying out £2.4 billion in claims during the first quarter of 2023. This represents an increase of 14 per cent on the same period during 2022.
The cost of providing courtesy cars has also risen by 29 per cent in the last year, due to longer average repair times.
Anna McEntee, director at Compare the Market, said: “Drivers will be concerned that the cost of car insurance is rapidly increasing. Some young drivers are facing particularly steep hikes of more than £500. It’s now more important than ever for people to shop around and compare prices to check you’re getting a great deal.”
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.