Home news Average car insurance bills soar £90 in a year

Average car insurance bills soar £90 in a year

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The average annual car insurance premium has risen by £90 during the last year to around £666, research shows.

This is an increase of just over 15% compared to a year ago – and a hike of more than five times the Consumer Prices Index rate of inflation at 2.9% in May, Consumer Intelligence said.
Premiums are tipped to rise further still according to John Blevins, a pricing expert at the research consultancy, because the full impact of a recent 2% hike in the rate of insurance premium tax (IPT) are not included in the figures.
He said drivers would need to shop around to limit the hikes to their premiums.
The IPT tax hike came into force earlier this month.
The cost to cover cars, homes, pet and health insurance are all affected with the rate of IPT increasing from 10% to 12%.
It means the rate of tax paid on most insurance policies has doubled in less than two years, up from 6% in 2015.
Car insurance premiums were calculated by Consumer Intelligence by comparing the prices offered to 3,250 people by major price comparison websites and direct insurers.
Researchers found drivers aged 21 to 24 are paying the most on average at £1,202 – but have seen slightly lower annual premium increases at 13.1%.
Motorists aged over 50 are experiencing the biggest rises at 17.9%, however, are paying around £418 for cover.
The analysis also revealed that drivers in London are typically paying the highest premiums of around £1,000 – more than double the £474 average bill in Scotland and the South West of England.
Here are the average premiums and increases over the past year across the country, according to the research:

:: London, £1,000, 16.7%
:: North West, £867, 15.7%
:: West Midlands, £748, 13%
:: Yorkshire and the Humber, £658, 15.7%
:: North East, £646, 18.9%
:: Eastern England, £574, 16.5%
:: East Midlands, £553, 17.6%
:: South East, £549, 13.5%
:: Wales, £539, 14.4%
:: Scotland, £474, 16.6%
:: South West, £474, 15.9%

Source: SKY News