9th October 2015
Car insurance is costing motorists nearly £50 a year more than last year, with older drivers hit the hardest.
Figures by Confused.com show the average comprehensive car insurance premium rose by £29 to £629 in the three months to the end of September – a 4.8% increase on the previous quarter and the largest increase since the end of 2010. Over the past year insurance premiums have increased £47 on average.
Older drivers have been hit particularly hard. In the 12 months to the end of September, car insurance for those aged 68 increased by 15%, the highest of any age group. The rise means the average premium is up by £59 to £439 a year.
Drivers aged 60 were also worse off and faced the largest quarterly rise at 8% as average premiums increased £29 over the quarter to £393.
Younger drivers still pay the highest premiums but saw the smallest increases in the past three months. Confused.com said this low increase could be down to the use of black box technology.
Those aged 17 and 18 saw premiums rise 0.3% and 2.9% respectively so premiums for the year now sit at £1,916 and £1,934 – more three times higher than the average premium.
The increase in the cost of car insurance, which has been growing for the past year following three years of declines, will be impacted further by the insurance premium tax that comes into force next month.
Chancellor George Osborne used the summer Budget to increase the tax from 6% to 9.5% making motor, home and other insurance more expensive.
Steve Sanders, finance director at Confused.com, said: ‘It would seem that the days of cheap car insurance really are over – just like six years ago we’re seeing substantial increases in prices for most UK motorists, with only the very youngest of our driver profiles being relatively unaffected.
‘And with the government’s increase in insurance premium tax, rising from 6% to 9.5% this November, we’re likely to see continued inflation in car insurance prices across the rest of 2015, and into 2016.’