The cost of insuring your car has increased greatly increased in the UK, according to research from a price comparison website.
Confused.com revealed the cost of vehicle insurance had increased by 19 per cent (virtually one-fifth) within the last 12 months, as part of its quarterly car insurance price index, and that the spike was the biggest in five years.
That takes the average cost of a comprehensive car insurance plan from £600 the same time in 2015 to £715 in 2016.
In terms of regions, Northern Ireland saw a 25 per cent increase, taking the average to a whopping £863. Meanwhile those who live in the Scottish Hebrides saw an increase of 42 per cent – the largest increase ever recorded since the index began in 2006.
London motorists, unsurprisingly, pay the highest premiums of any region, at £1,149 – £449 above the national average. West central London witnessed an increase of 36 per cent.
In terms of age, the data revealed 17-year-olds only saw an 8 per cent increase, helping the average premium to break the £2,000 barrier. Those over 61 saw an increase of 24 per cent but the average is a mere £418.
Even though increased car insurance makes motoring even harder to bear, it is worth noting premiums are still below the £858 average seen in 2011, although give it another year and we get the feeling they will top it.
Amanda Stretton at Confused.com said that, despite the big increase, insurance companies are still losing money. “Insurance companies are still not making a profit,” she explained. “The most recent figures show that, for every £1 that an insurance company takes in premium, its costs are more than £1.01.”
She added: “We saw a similar increase in premiums at the end of 2009 through to the beginning of 2010 and it continued at even greater rates until mid-2011, when we started to see the decrease.”