The cost of car insurance for motorists shot up by an average of 49% in one year, a price comparison site finds.
The typical price of premiums for drivers rose to an average of £848, a 49% increase on the same period last year. Meanwhile, over 55-year-olds saw the cost skyrocket by 54%.
Motorists aged between 55 and 79 now spend an average of £429 each year to protect their vehicles and the over 80s now face an annual cost of around £645. Predictably, the priciest age to insure your car is saved for 16-24 year olds, who pay an eye-watering average of £1,893.
Regional differences
The study from Compare the Market revealed the areas in the UK to experience the sharpest rise in car insurance premiums, with the West Midlands topping the charts due to a 53% increase since last year.
Premiums in the area cost an average of £1,013, the second most expensive place behind Greater London, where car insurance will set you back around £1,341 – a 51% rise since 2022.
Other regions to experience a hefty increase were Yorkshire & The Humber (50%) and the North West (49%). Drivers in Northern Ireland had the smallest price hike, a still sizeable 35%.
Drivers should shop around before renewing policy
It has never cost more to insure your vehicle in the UK, and in August YourMoney.com reported how the average cost rose 21% this year alone. Compare the Market claim the ‘rapid rise’ in inflation is to blame, with the rising cost of spare parts, energy, and specialist mechanics having a knock-on effect on insurers repair costs.
Julie Daniels, motor insurance expert at Compare the Market, said: “The rising cost of car insurance is understandably causing concern for many motorists, with our research showing motor premiums have increased by 49% year-on-year. For all drivers, shopping around ahead of renewal is one of the best ways to save money on car insurance.
“We want to encourage motorists over 55, who have typically tended more to stick with their existing insurance provider each year, to compare prices to find the right deal. It’s also important for people to consider if they’re able to encourage or support friends and family members to look for savings online.”
Average cost to insure your car
Compare the Market: Cost of car insurance by driver’s age (YoY)
| 16-24 | 25-34 | 35-44 | 45-54 | 55-64 | 65-79 | 80+ | Overall | |
| Sep-22 | £1,249 | £584 | £468 | £356 | £278 | £261 | £423 | £570 |
| Sep-23 | £1,893 | £896 | £696 | £551 | £429 | £403 | £645 | £848 |
| Change (£) | £644 | £312 | £228 | £195 | £151 | £142 | £222 | £278 |
| Change (%) | 52% | 53% | 49% | 55% | 54% | 54% | 52% | 49% |
