Car insurance prices spike by nearly £40 in 12 months

UK car insurance premiums have increased by close to £40 over the past 12 months, according to new research.

It represents the highest annual increase in prices in 18 months and means that the average driver will now be spending £789 on their car insurance. The increase means that today’s drivers are spending £257 more on car insurance than those 10 years ago.

In particular, those motorists aged 49 are paying £289 more than they were when they were 39, on average. Likewise, those aged 71 and over are now paying £201 more than they had been 10 years ago.

Louise O’Shea, chief executive at Confused.com, who commissioned the study, said: “We hate to be the bearer of bad news, but it seems car insurance prices are really starting to accelerate. In fact, we’re seeing some of the steepest price hikes in 18 months.

“We should be shopping around for the best deal, whether we’re a new driver or renewing for the tenth year, as there’s always another insurer out there willing to offer us a better deal.

“Please don’t pay more than you have to – take a few minutes to check your renewal letter and get a cheaper price.”