The typical car insurance premium increased by 52 per cent year-on-year in December 2023 to a steep £950, according to new research.
This represented a steep £326 increase compared to the previous 12 months, with drivers aged 24 and under being stung the most, according to Compare the Market.
A typical premium for a young driver was £2,002, representing a sharp £655 increase on December 2022. However, drivers of all age groups saw their premiums surge, with those aged 65-plus recording the largest proportional increase, with a typical quote in December 2023 for motorists of this age being 57 per cent higher.
An average premium for those aged 65 to £79 is now £428 (a £155 jump), while those aged 80 are now typically paying £688, representing a £249 increase on the previous year.
Compare the Market says the steep increase in insurance premiums is down to the the rising cost of claims for insurers, with high inflation driving up the price of spare parts, hire cars, energy and hiring specialist repairers. The insurance comparison site is urging motorists to shop around to get a better deal and says drivers could save ‘up to £578’ by using its portal.
Julie Daniels, motor insurance expert at Compare the Market, said “Many drivers will be worried about the substantial increase in the cost of their car insurance.
“Our research shows the typical premium now costs £950, with lots of younger motorists likely paying even more than this. As household bills continue to rise, it’s so important for drivers to take a few minutes to compare prices from different providers when their car insurance is up for renewal.”