Car insurance soars by nearly 10% in a year with more price rises on the way
Car insurance premiums have increased by 9.3% in the past year with drivers over the age of 50 seeing the biggest rises, according to research.
Premiums for those over 50 increased by 10.9% in the year to November – and by 34% in the past three years, the data from research firm Consumer Intelligence shows.
However, older drivers still pay the lowest average annual premiums at £398 compared with other age groups.
Consumer Intelligence warns the third rise in Insurance Premium Tax (IPT) to 12% due from 1 June 2017 will continue the pressure on premiums and urges drivers to shop around for the best deals.
Its data – used by the Office for National Statistics to calculate official inflation statistics – shows premiums for those aged 25 to 49 rose 9.5% in the year to November and 7.1% for drivers aged 21 to 24.
Over the past three years, motorists aged 25 to 49 have seen increases of 24.4% and 21 to 24-year-olds have seen increases of just 2.9%.
Ian Hughes, chief executive of Consumer Intelligence, said: “Car insurance premiums continue to accelerate and the year ahead is certain to bring more rises as Insurance Premium Tax is increased yet again.
“IPT will have doubled in less than two years hammering motorists who have no choice about whether or not to insure their vehicle. They can however choose their insurer and everyone should be shopping around to at least limit price rises.”
Average premiums for 25 to 49-year-olds are £636 compared with £1,190 for those aged 21 to 24. The three months to November have seen premiums rise by 2.7% for the market as a whole and 3.8% for 21-24-year-olds.
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