Analysis from Confused.com suggests that the average expense of car insurance in the UK has reached a new peak, approaching nearly £1,000, following a surge of 58 percent in premiums over the past year.
According to the Confused.com price index, which draws on more than six million quotes quarterly, the cost of insuring a car has climbed by an average of £338 in the last 12 months, reaching £924.
Exclusive data from Consumer Intelligence revealed in June that premiums had increased by 48 percent in the year, reaching their highest point since 2018, as many drivers either raised their policy excess or switched to third-party-only coverage in an effort to trim expenses.
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However, the most recent data indicates an even steeper rise, with premiums increasing by an average of 19 percent (£148) in the latest quarter alone. While price hikes were observed throughout the UK, inner London residents experienced the most severe impact, with a 61 percent (£567) increase, bringing average premiums in the capital to over £1,500.
Beyond London, drivers in Manchester, Merseyside, and the West Midlands faced some of the sharpest rises, paying over £1,100 on average for coverage. Age-based calculations reveal that 18-year-olds now face an average expense of £2,995, as their premiums surged by 89 percent in the past year, adding £1,414 to the average bill.
According to the index, drivers, on average, cannot find car insurance for less than £1,000 until the age of 38. Although prices dropped during the pandemic, they have risen as people resumed normal driving habits, and the values of both used cars and new electric vehicles increased, with the latter featuring more advanced technology, leading to higher repair costs exacerbated by supply chain issues.
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