Car Insurance Premiums Set to Soar by the End of 2018
Drivers are already paying an average £827 for their car insurance but prices are set to reach their most expensive levels by the end of 2018.
In fact, insurance prices are set to reach £900 by the end of this year, according to Confused.com. The comparison site found that insurance prices have increased 8% since the end of 2016, adding £60 to the average premium.
In December 2017, premiums rose £3 while drivers were also on the receiving end of a 0.5p petrol and 0.7p diesel price rise.
According to its latest car insurance price index (Q4 2017), premiums are set to reach their most expensive levels ever by the end of 2018 and are just £31 short of the highest average price in 2011 (Q2, £858).
This is following two years of almost consistent price increases amounting to a +23% rise. But male drivers are hit harder than woman as this quarter marks the five-year anniversary of the EU gender directive, which bans insurers from assessing a driver’s risk based on their gender.
Despite this, male drivers are edging closer to the £900 mark and are paying £878 on average for their car insurance – £114 more than female motorists who are paying £764 on average.
Certain age groups are also penalised when it comes to premium pricing. Motorists aged between 18 and 23 have seen their premiums go up by over £100 since last year. Those aged 20 are also paying £173 more than people of the same age last year.
But teens aged 17 to 19 are still bearing the brunt of sky-high car insurance costs as they pay over £2,000 on average, with 18-year olds now forking out £2,220.
While lower in comparison (average of £600), drivers aged over 60 face the most significant percentage rises. Those aged between 65 and 67 have seen the cost of their premiums rise by 13% year-on-year; an increase of £60 and £59 respectively.
Regionally, drivers in the borders of Scotland saw a 17% increase, equivalent to 92, while drivers living in East & North East Scotland and the Scottish Highlands & Islands are facing 13% (£71) and 10% (£60) rises respectively. But drivers in Inner London face the most expensive premiums of anywhere in the UK, paying £1,283 on average.
Louise O’Shea, chief executive officer at Confused.com, said: “It looks like the average cost of car insurance is going to be over £900 in 2018 – the highest ever.
“The good news is that insurers now have to show us what we paid for car insurance last year. Therefore, it’s never been easier for drivers to check what they paid then and compare it to what they are asking you to pay now.”