Car insurance costs back on rise
Average quote for car insurance is now £594, with further price increases to come
Savings on fuel from recently-lowered prices to less than £1 a litre could be negated by increasing car insurance premiums, which have seen their first consecutive quarterly rise since 2011.
The first report of 2015 shows the average quote now sits at £594 – up by £12 on the previous three months – bucking a consistent trend of falling premiums over the previous three years. Another quarterly increase would see the average premium top £600 – a total not seen since the end of 2013.
• Petrol under £1 as prices hit five-year low
It’s a UK-wide rise, too, with 96 out of 121 postal towns experiencing an increase in the previous three months. The City of London recorded the biggest hike, at £80; Manchester and Merseyside reported the priciest insurance policy outside the capital.
Both men and women have seen rises compared to the last quarter – up by £13 and £11 respectively – while young and old drivers have been hit, too. Those aged 17 have been subject to a quarterly price rise of £73, meaning their policy now costs, on average, £1,983.
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Drivers aged 61 have experienced the greatest percentage price increase of any age group, seeing their premiums rise by 4.7 per cent quarter-on-quarter to £342.
The report, by comparison site Confused.com in association with consultant Towers Watson, warns that policyholders should prepare themselves for further price increases over the coming months.
Steve Sanders, finance director at Confused.com, said: “While some consumers may still be experiencing year-on-year savings on their car insurance policies, these will be eroded by further price increases.”
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