That’s a rise of £326 on the previous year and has led to a third (31%) of motorists finding it difficult to cover the ever-growing cost of motoring.
Almost seven in eight (78%) of the 2,000 drivers surveyed by Compare The Market are worried about the rising cost of car insurance too.
The comparison service suggests the hefty costs are due to increasing prices for the cost of claims that insurers have to pay out. It notes that another cause is the high inflation rate which is increasing the prices of spare parts, energy bills and the hiring of specialist mechanics.
Young drivers see premiums soar past £2,000
While the average price for drivers hits nearly £1,000, that figure is doubled for motorists under the age of 24 years old. They can expect to pay at least double that amount, with premiums broaching the £2,000 mark – after a yearly rise of £655.
Last month’s report found the extortionate premiums are forcing six in ten young drivers to take on debt to keep their car running.
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It wasn’t just the youngest drivers who experienced pricey premiums, drivers over 65 felt the sharpest rise in proportion to what they paid last year, with costs shooting up by 57%.
Further, motorists between the ages of 65 and 79 can expect to pay annual insurance costs of £428 while drivers over 80 will pay an average of £688.
The UK’s most popular vehicles including Ford, Volkswagen and BMW all saw premiums accelerate by at least £300 compared to 2023 too.
‘Many drivers will be worried’
Julie Daniels, motor insurance expert at Compare the Market, said: “Many drivers will be worried about the substantial increase in the cost of their car insurance.
“Our research shows the typical premium now costs £950, with lots of younger motorists likely paying even more than this.”
Daniels added: “As household bills continue to rise, it’s so important for drivers to take a few minutes to compare prices from different providers when their car insurance is up for renewal. It’s quick and simple to look at what deals are available and could help you save hundreds of pounds.”
Here’s a breakdown of the average car insurance costs for drivers based on their age and chosen vehicle, using data from Compare The Market.
Cost of car insurance by driver’s age (year on year)
| <24 | 25-34 | 35-44 | 45-54 | 55-64 | 65-79 | 80+ | Overall | |
| December-22 | £1,347 | £624 | £505 | £387 | £297 | £273 | £439 | £624 |
| December-23 | £2,002 | £970 | £744 | £598 | £456 | £428 | £688 | £950 |
| Change (£) | £655 | £346 | £239 | £211 | £159 | £155 | £249 | £326 |
| Change (%) | 49% | 55% | 47% | 55% | 54% | 57% | 57% | 52% |
Cost of car insurance by manufacturer
| Audi | BMW | Ford | Vauxhall | Volkswagen | |
| Dec-22 | £805 | £997 | £566 | £606 | £752 |
| Dec-23 | £1,154 | £1,410 | £870 | £927 | £1,156 |
| Change (£) | £349 | £413 | £304 | £321 | £404 |
| Change (%) | 43% | 41% | 54% | 53% | 54% |
