Car insurance premiums in the UK are at their highest recorded levels, according to WTW and Confused.com.
Launched in 2006, the Confused.com Car Insurance Price Index in association with WTW shows that UK motorists are now paying £776 on average for comprehensive car insurance. In an emailed release, it was noted that the figure represents an all-time high.
The previous peak, at £663, was recorded in 2011. The current average, meanwhile, is £222 more than 12 months ago, with premiums having increased for seven straight quarters.
“Motorists are facing the sharpest acceleration in premium rates, as insurers continue to grapple with a cocktail of rising costs,” said Tim Rourke (pictured), UK head of property & casualty pricing, product, claims, and underwriting at WTW.
“High levels of claims inflation are being driven primarily by the sharp rise in used car prices, amplified by rising vehicle theft, spare part delays, longer repair times, and higher wages, all pushing costs above premium income and forcing insurers to play catch-up by increasing prices.”
According to price data compiled from more than six million customer quotes per quarter, all regions across the UK recorded double-digit increases in motor insurance premiums over the last 12 months.
WTW noted: “The South West of England continues to be the cheapest region for car insurance, with average premiums now costing £509. Inner London remains the most expensive region, where prices are now on average £1,257, having increased in the last 12 months by 43%.
“Meanwhile, the average cost of car insurance in Outer London has for the first time exceeded £1,000, where drivers now pay an average bill of £1,003.”
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