UK car insurance prices have risen a fifth in the past year and are now at their highest since 2011, as insurers demand higher premiums to cope with surging inflation in the cost of claims.
The average policy now stands at £657, according to first-quarter figures from comparison website Confused.com, in partnership with insurance broker Willis Towers Watson. The index is based on quotes provided by insurers.
Young drivers are being hit with especially high increases, with 17-year-olds having to pay £446 more than they did a year earlier, taking a typical annual policy for this cohort to £1,612.
“For drivers who’ve bought policies already this year, the spike in costs might have come as quite a shock,” said Confused.com’s Louise Thomas.