Car insurance premiums have hit a two-year high, increasing five per cent to £815 over the course of 2019 – the steepest rise since 2017.
In the last three months of 2019, premiums jumped four per cent, which also marked the biggest quarterly increase in two years. This means the average annual price of a policy is now getting close to the highest on record, which was £858 in 2011.
The data is based on quotes from insurance comparison site Confused.com, and reveals that premium quotes fluctuated throughout the year before sharply increasing in the final quarter. Female drivers bore the brunt of this – their quoted premiums leapt by seven per cent. In spite of this, men still pay £87 more for their insurance each year on average.
As for age groups, 18-year-olds are still paying the most, with quotes rising seven per cent over the course of the year to an average of £2,130. There were increases for 17 and 19-year-olds, too, with both these groups now being respectively quoted £1,971 and £1,990 on average.
Regionally, quotes in inner London jumped eight per cent to £1,260, while the West Midlands and Outer London both broke the £1,000 barrier for the first time, with increases of seven per cent and six per cent respectively.
A survey of 2,000 drivers conducted by Confused.com found 27 per cent don’t understand why their premiums increase each year. Of those who received their renewal notices in the last three months, 53 per cent said the renewal price was an increase rather than a decrease, with the average rise being £52.
Upon receiving an auto-renewal notice from your insurer, it’s best practice to find some cheaper quotes online if you can, before calling up your current insurer up and haggling the price down.
Louise O’Shea, CEO of Confused.com, commented: “It’s January, the month to save money and re-evaluate our spending. But the bad news is car insurance costs are increasing and, as drivers, this is something we can’t avoid. If costs continue to accelerate at this pace, we could be paying record prices by the end of the year.”
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