Car insurance premiums are set to reach their highest point this year, thanks to a combination of tax increases and the rising cost to repair cars.
A study published today has found that premiums are expected to reach £900 by the end of 2018. It is set to exceed an average of £853, which was set back in 2011.
The research also found that the disparity between the price men and women pay for insurance premiums still continues. Men are typically charged £114 more for premiums, even with rules in place to ban gender factoring in to quotes.
Insurance comparison site Confused.com found that at the end of 2017, drivers were paying an average of £827.
Yet, prices in some regions have already reached well into four figures. Those in London were already paying an average of £1,283 by the end of last year, while those in Bradford have to stump up an average of £1,233. Those in London City are the worst hit though, paying a staggering £1,599.
While younger drivers are still those paying the most for premiums, drivers 60 years of age and over are seeing the greatest change in the cost of premiums, although they are still largely paying the least – under £600 on average.
The blame has been placed on pressures in the industry, including on the rate of insurance premium tax that has doubled to 12 per cent in just two years. Technical and expensive parts fitted to many cars are also thought to be driving up the cost of prices.
The news is yet another piece of negative news for drivers, as fuel prices are also expected to reach a three-year high in 2018.
January 22, 2018