Car insurance costs soar as average policy tops £1,000 after rising 34 per cent in a year – with those under 25 facing paying £2,145
- The average policy is now £1,082 after the largest increase since 2013
- The increase in costs is due to factors such as inflation and supply shortages
The cost of car insurance has risen by 34 per cent in a year as the average policy topped £1,000 for the first time in six years.
The average policy is now £1,082, while those under 25 could face paying £2,145 as they are seen as more high risk.
Meanwhile customers aged between 25 and 50 have seen a 36.4 per cent increase, according to the research carried out by Consumer Intelligence.
The rising costs, in part due to inflation, supply shortages and the higher cost of servicing claims, mark the largest increase since tracking began in 2013.
Even in the month between February and March there was a 14.4 per cent rise. EY predicts that costs will rise again by 11 per cent (£59) per policy next year.
The cost of car insurance has risen by 34 per cent in a year as the average policy topped £1,000 for the first time in six years
If drivers have to make a claim, the average excess they need to pay has risen by 10.9 per cent to £204.
Max Thompson from Consumer Intelligence told The Times that the rise in premiums is ‘alarming’ and ‘unprecedented’, especially when considering the high costs for younger motorists.
One way to potentially decrease your car insurance payments is to prove to a company that your mileage has reduced – for example, if you’ve begun to work from home more often.
Companies will consider mileage as a key element when they determine the risk associated with insuring a vehicle.
Depending on your car, you will either have a mechanical or digital odometer which allows you to track your mileage.
Typically, the more miles you drive, the higher the likelihood that you will be involved in an accident.
Some companies will offer low mileage discounts – usually if you drive under 7,500 or 8,000 miles per year, or about 21 or 22 miles a day.
Car insurance premiums are also determined by body type, with pickup trucks and SUVs among the most expensive to insure, according to a study by ValuePenguin earlier this year.
Other ways to try to bring down your costs include trying to take advantage of discounts such as loyalty schemes, multiply policy discounts, or a claims-free or violation-free discount.
For those who do not drive often, pay-as-you-go insurance could be a good option.
The average policy is now £1,082, while those under 25 could face paying £2,145 as they are seen as more high risk (file image)
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