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Car insurance rises by 18 per cent over the year

Drivers over the age of 80 see steepest proportional increase in premiums but it’s young drivers who are being stung the most.

Driving Test survey

Car insurance has risen by 18 per cent on average over the past year – with youngsters being hit the hardest.

That’s according to Compare The Market, which said the typical premium had risen by £132 over the past 12 months, standing at £850 in May 2024 versus £718 in May 2023.

The comparison site’s research shows that drivers over the age of 80 have seen the steepest proportional increase in their insurance – 27 per cent up on average, with the annual payment now £139 higher at £656 compared with £517 last year.

However, drivers aged under 25 took the biggest hit to their wallets. Their average annual payment is now £1,901 versus £1,591 in May 2023 – an extra £310, or 19 per cent.

Compare The Market director Anna McEntee said: “The substantial cost of car insurance is understandably causing concern for many motorists.

“Our research shows motor premiums have risen by more than £100 year on year.”

She added: “Drivers aged under 25 and over 80 are seeing the steepest increases.

“Typically, insurers consider motorists in both age groups as more likely to make a claim, which could lead them to see higher premiums.”

But the average annual premium overall has declined by £80 month on month from April 2024, when it was £930, to £850 last month – a drop of nine per cent.

The peak of the recent spike in car insurance was in November 2023 when the average annual premium reached £951.

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