Car insurance premiums set to hit record high

Published 20 January 2020

Car insurance prices are set to hit the most expensive on record, with drivers warned to expect average premiums toppling 2011's peak of £858.

Insurance comparison website has monitored millions of quotes and discovered that the average driver is now paying £41 more compared to this time last year. That means the average car insurance premium is now £815 - with a record high expected by the end of 2020 - according to its car insurance price index.

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While young drivers are hit the hardest for car insurance (the average 18-year-old pays £2130), the increases affect motorists of all ages. 38-year-olds saw an increase of seven per cent over the last year, while 69-year-olds saw their costs climb by nine per cent.

Female drivers are facing the toughest penalties, with premiums up £48 compared to 12 months ago - meaning they'll now pay £767 for their car insurance on average. However, men still continue to pay more, with males paying £854 on average for their insurance.

“It’s January, the month to save money and re-evaluate our spending," said's CEO, Louise O-Shea. "But the bad news is car insurance costs are increasing. And, as drivers, this is something we can’t avoid. If costs continue to accelerate at this pace, we could be paying record prices by the end of the year."

“Shopping around is key to saving on car insurance. And even if your renewal price is cheaper, or the same, it’s likely there will be another insurer out there willing to offer a better price."

Drivers in some regions may be feeling particularly stung by recent insurance premium increases. Those in Inner London, in particular, have seen the cost of their insurance soar by £91 over the past 12 months. As the most expensive region in the UK for car insurance, drivers in this area are now paying an eye-watering £1260 on average.


hissingsid    on 21 January 2020

These so called findings are not consistent with my experience.
I am in the over 69 age group which allegedly saw a 9% increase in 2019.
I bought a new Mazda in 2016 and have insured it through Mazda ever since.
Each year to date, my renewal premium has FALLEN, not increased.
There have been no changes in my personal circumstances, and I have been entitled to the maximum No Claims Bonus throughout.
More people need to challenge the prophets of doom with hard facts.

Marcus T.    on 22 January 2020

" the average car insurance premium is now £815"- Blimey, I won't complain from now on about the £240 fully comp I pay.

GingerTom    on 24 January 2020

"Female drivers are facing the toughest penalties, with premiums up £48 compared to 12 months ago."

What rot! Insurers are not permitted to discriminate between male and female and haven't for several years.

Just a free advert for a company spreading fake news. So best avoid them !!

GingerTom    on 24 January 2020

@ hissingsid: Correct. Many premiums have fallen but of course this doesn't make a good story like them going up. No-one creates an editorial on falling premiums!

Edited by GingerTom on 24/01/2020 at 15:39

GingerTom    on 24 January 2020

@Marcus T. Yes if that's their average premium then best to use someone else !

gordonbennet    on 14 February 2020

Makes you wonder what catalogue of disasters these people are having to disclose to have premiums like those.

Three vehicles insured here with proper companies, all fully comp, two protected policies, smallest engine a 2.5 petrol turbo, under £700 the lot.

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