Average Car Insurance Premium Up £90 Over Last Year

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The average car insurance premium climbed by £90 compared to last year, analysis shows.

Almost half of this increase was seen to have taken place during the three months to May.

At £665, the typical annual premium across Britain is now just over 15% higher than 2016, a surge of more than five times the Consumer Prices Index rate of inflation at 2.9% in May, Consumer Intelligence said.

Motorists in London normally pay the highest average premiums of £1,000 across the nation, more than twice the £474 average bill in Scotland and some parts of England.

Drivers aged between 21 and 24 pay the highest fees on average at £1,202, but have seen somewhat lower annual premium hikes at 13.1%. Motorists over 50 are experiencing the largest rises at 17.9% but pay premiums of £418 typically, researchers found.

John Blevins, a pricing specialist at Consumer Intelligence, said: “the full impact of a recent hike in the rate of insurance premium tax (IPT) was yet to show up in the figures, so drivers would need to shop around to limit the hikes to their premiums.”

“There is some relief from plans to push ahead with whiplash reforms announced in the Queen’s Speech,” he added.

Premiums were calculated by analyzing the prices offered for 3,250 people by major price comparison sites and direct insurance companies.

According to Consumer Intelligence, the average premiums and increases over the past year across the country are as follows:

London, £1,000, 16.7%

North West, £867, 15.7%

West Midlands, £748, 13%

Yorkshire and the Humber, £658, 15.7%

North East, £646, 18.9%

Eastern England, £574, 16.5%

East Midlands, £553, 17.6%

South East, £549, 13.5%

Wales, £539, 14.4%

Scotland, £474, 16.6%

South West, £474, 15.9%