Over the past year, car insurance prices have risen by 16%, meaning the average driver now pays £781 per year for their car insurance premium. This is expected to rise to above 2011′s record of £858 later this year, which could lead to it breaking the £1000 mark by next year!
This is due to drivers being hit by the rising cost of premium tax, repairs and the government reducing the ‘discount rate’ limiting compensation payouts to claimants facing long-term personal injury, which will also add to the cost of premiums. Increases can be seen in most areas across the UK, with no region escaping an annual price rise.
Despite the EU gender directive, stating that gender cannot be taken into account when calculating car insurance prices, it looks as though males still pay more than females for their car insurance. The average premium of a male driver is around £824, which is £96 more than female drivers, who can look to pay around £728.
Insurance comparison website Confused.com is urging customers to shop around.
Amanda Stretton, motoring editor at Confused.com, says: “Drivers across the UK are seeing car insurance prices accelerate and there seems to be no sign of slowing.
“Thankfully, insurers are now required to show drivers their premium from the previous year at the point of renewal.
“So being able to compare the amount they paid in the previous year and armed with the knowledge that prices are rising across the board, motorists should be more inclined to shop around.
“To get the best deal drivers should take note of their renewal price and get a quote through a car savings site, such as Confused.com, to see if they can get a cheaper car insurance premium elsewhere.”
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