The cost of car insurance in the UK has increased and could soar to a new record level if recent trends continue, a new survey has revealed.
Latest data from price comparison website Confused.com and Willis Towers Watson showed that the average comprehensive premium went up by 6.5% in the second quarter and reached £715.
This means that compared with the price 12 months ago, the average cost of car insurance is now higher by £115 or 19.2%, the biggest annual rise recorded by the survey since 2011.
“We’ve not seen price rises of this magnitude for five years – a 19% annual increase is substantial to say the least,” said Steve Fletcher, head of data services at Confused.com.
“If prices continue to rise at the rate we’ve been seeing, we could be facing the possibility of average comprehensive premiums breaching the all-time high seen in 2011, when they peaked at £858,” he added.
Fletcher said the price hikes are being felt by drivers of all ages and genders and across all UK regions.
Double-digit annual increases have affected every age group, but male drivers aged over 71 have been hit the hardest.
“Older drivers have seen the biggest increases in car insurance premiums, which are most likely to have been driven by inflationary pressures on claims costs, especially on vehicle damage repair costs,” said Stephen Jones, UK head of property and casualty pricing at Willis Towers Watson.
Jones said the cost and complexity of repairs – particularly now that cars are fitted with more expensive technology – have contributed to the premium increases.
By regions, the biggest quarterly increase of 8.4% was recorded in the Scottish Highlands while the lowest price jump of 2% was seen in Central and North Wales.
Hereford was the only town in mainland UK to have an actual drop in average prices at 1.6%, while premiums went up in Dorchester by 16.2%.
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