You are here: Home - Insurance - News -

Car insurance set to sky rocket by the end of 2018

0
Written by: Paloma Kubiak
22/01/2018
Drivers are already paying an average £827 for their car insurance but prices are set to reach their most expensive levels by the end of 2018.

In fact, insurance prices are set to reach £900 by the end of this year, according to Confused.com.

The comparison site found that insurance prices have increased 8% since the end of 2016, adding £60 to the average premium.

In December 2017, premiums rose £3 while drivers were also on the receiving end of a 0.5p petrol and 0.7p diesel price rise.

According to its latest car insurance price index (Q4 2017), premiums are set to reach their most expensive levels ever by the end of 2018 and are just £31 short of the highest average price in 2011 (Q2, £858).

This is following two years of almost consistent price increases amounting to a +23% rise.

But male drivers are hit harder than woman as this quarter marks the five-year anniversary of the EU gender directive, which bans insurers from assessing a driver’s risk based on their gender.

Despite this, male drivers are edging closer to the £900 mark and are paying £878 on average for their car insurance – £114 more than female motorists who are paying £764 on average.

Certain age groups are also penalised when it comes to premium pricing. Motorists aged between 18 and 23 have seen their premiums go up by over £100 since last year. Those aged 20 are also paying £173 more than people of the same age last year.

But teens aged 17 to 19 are still bearing the brunt of sky-high car insurance costs as they pay over £2,000 on average, with 18-year olds now forking out £2,220.

While lower in comparison (average of £600), drivers aged over 60 face the most significant percentage rises. Those aged between 65 and 67 have seen the cost of their premiums rise by 13% year-on-year; an increase of £60 and £59 respectively.

Regionally, drivers in the borders of Scotland saw a 17% increase, equivalent to 92, while drivers living in East & North East Scotland and the Scottish Highlands & Islands are facing 13% (£71) and 10% (£60) rises respectively. But drivers in Inner London face the most expensive premiums of anywhere in the UK, paying £1,283 on average.

Louise O’Shea, chief executive officer at Confused.com, said: “It looks like the average cost of car insurance is going to be over £900 in 2018 – the highest ever.

“The good news is that insurers now have to show us what we paid for car insurance last year. Therefore, it’s never been easier for drivers to check what they paid then and compare it to what they are asking you to pay now.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Six reasons to delay an annuity purchase

Annuities provide retirees with a guaranteed income for life but before locking in, here are six reasons why you may...

Close