Car insurance quotes are up 61 percent since last year, with the average premium reaching £924.
Britons are urged to check now if they can lock in a cheap quote as the increases are expected to continue into next year.
Insurers can no longer charge renewing customers more than new customers, however, experts have warned that doesn’t mean people will get the best price by staying put.
A 19 percent rise in the third quarter of 2023 has seen the average price of a car insurance premium hit a staggering new record high of £924, according to new data released by comparison site Confused.com.
Prices have rocketed by an average of 58 per cent or £338 compared to this time last year, the company claims, which is the highest annual rise since it started tracking premium prices in 2006.
According to Confused.com, reasons for the rapid surge in prices include the extra burden of cost associated with expensive to repair electric cars, parts shortages holding up repairs, and the high cost of used cars affecting replacement costs.
Commenting on the data, Martin Lewis, the money-saving expert has warned “worse is here”, seemingly even quicker than he expected.
In his newsletter, he wrote: “So I make no bones about repeating the warning, but this time EVEN LOUDER!
“Consumer Intelligence says things are likely (no guarantee though) to keep getting worse until the middle of 2024. Analysts at Consumer Intelligence, assess 17million quotes a year.
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“Insurers say rises are partly due to general inflation, rising car repair costs – with garages charging more for parts and labour – and paying out more for written-off cars, due to the value of used cars getting ever higher.
“Whether this justifies it or not is frankly moot; the rises are happening, and the most pressing issue is how to try to counter them, so let me say it again..
“Everyone, take a few minutes to check if you’re overpaying. If you are, even if you’re not near renewal, you may be able to lock in a price to forestall future increases for a year.”
The brunt of the shocking rises is being felt across the board, but younger drivers are suffering the most, with 18-year-olds paying an average of £2,995 for an annual policy, which is a rise of 89 percent (or £1,414) in the last 12 months.
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It’s even worse for 17-year-olds, who have seen the price of their premiums almost double over the course of the last year.
The average policy for those unfortunate has risen by 93 percent, reaching an eye-watering £2,613.
I’s important to search the market for a competitive insurance deal when people first buy their car and then each year when it comes to renewing their policy.
They can use comparison tools such as MoneySuperMarket and Comparethemarket in order to boost their chances of finding the cheapest policy.
It should be noted though that the cheapest isn’t necessarily the best. Britons are encouraged to always compare the level of cover they are offered by the different policies, not just the price.
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