Rise In Motor Insurance Premiums

Unfortunately, some motorists could be facing an increase in their car insurance premiums based upon the information contained in the most recent quarterly price index produced jointly by Confused.com and Towers Watson.

Car insurance premiums are likley to increase in part due to the number of motoring accidents

Car insurance premiums have been increasing which may be partly attributable to the number of road traffic accidents.

In the third quarter of this year, it shows that the average premium for fully comprehensive car insurance amounted to £629 per annum. When compared with the same quarter in 2014, it indicates an increase in premiums of £47 per annum for the same level of cover when the premium averaged £582. This equates to an increase of 8.1%.

It probably does not come as a surprise to read that it is the young motorist that is suffering the most as, in the main, they are paying the highest premiums. In fact, a 17 to 20 year old male that happens to live in Inner London is paying an average of £2,799 per annum for comprehensive car insurance. That is more than £2,000 in excess of the average premium paid by all motorists for this level of cover. That can sometimes equate to more than many young motorists are paying in car finance repayments.

Having said that about young drivers, it is interesting that across the country, on average, a 17 year old saw the smallest rise of only 0.3% in their motor insurance premiums to £1,916 per annum.

Someone aged 30 saw a rise of 6.3% equating to an increase of £39 pa to an average premium of £660 pa. A person aged 50 saw their premiums increase by an average of 7.5% equating to a rise of £38 to an average of £546 pa. An individual aged 60 saw their premium increase by 8% that equated to a rise of £29 a year to an average of £393 per annum. A 70 year old saw a rise of 6.6% that came to a rise of £22 taking their annual premium to £363.

The 5 most costly regions for this type of car insurance were: –

Inner London – £1,016 pa
Manchester and Merseyside – £830
Outer London – £799
West Midlands – £781
Northern Ireland – £741

It is also interesting to note that the difference in car insurance premiums being paid by males and females is widening. The average premium paid by a male is £657 pa yet for a female it is only ££593 pa – a difference of £64. Back in the third quarter of 2013, the difference was only £30 per annum.

You may wish to look at further car insurance statistics contained in the above index that can be viewed on the Confused.com website.

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