Average cost of car insurance nears £1000
Wed, 24 Jan 2024
The average cost of car insurance in the UK has edged closer to a staggering £1000, new analysis from confused.com has discovered.
Motorists can now expect to pay an average of £995 for car insurance in the UK – a whopping £366 more than 12 months ago.
This means that car insurance prices have gone up nearly 60% in the space of a year, taking them to the highest level on record.
It’s even worse for those aged 17-20 years old, who face an annual increase of more than £1000. For the first time ever, 18-year-olds are now paying more than £3000 for car insurance.
Meanwhile, for 17-year-olds, the price of car insurance has gone up an eye-watering 98%, or £1423, in just one year.
On average, anyone up to the age of 43 can expect to pay £1000 or more for their car insurance.
The only positive from the latest figures is that the rising cost of car insurance appears to be slowing.
In the past three months, the average cost of car insurance has ‘only’ gone up by 8%, or £71. That compares to quarterly increases of 18% and 19% between March and September 2023.
However, with the UK economy still fluctuating and the car insurance industry reacting to this, how long increases stay at this pace remains to be seen, says confused.com.
But why are car insurance prices so eye-wateringly high at the moment? Louise Thomas from confused.com says claims are one of the biggest factors when it comes to car insurance price rises. "With the cost of paying out for claims being so high, insurance prices are going to be too."
Inflation is also behind the rise in prices, due to the impact on the cost of repairs. Modern cars are equipped with more expensive tech, while a rise in the number of cars on the road means a higher risk of accidents.
"While it looks like increases could be slowing down for now, we still need to be doing what we can to keep these costs as low as possible," adds Thomas.
She advises motorists to try and increase the security of their car, making it harder for thieves to steal it and force them to claim.
Following the trend towards working from home, she also advised motorists to check how many miles they drive, while adjusting the excess can also cut annual premiums.
"Ultimately, shopping around is the only way to know you’re playing the cheapest price available to you. With prices so high, it’s a very competitive market right now – and the car insurance market remains incredibly volatile."
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