Car insurance premiums up 20%

According to research from Consumer Intelligence, car insurance premiums have just seen their biggest ever annual rise over the last 12 months, going up by an astonishing 19.6%.

This means that the average premium for drivers has rocketed to the hefty sum of £564.69, which is enough to make anybody think twice before buying a car.

As ever, it’s young drivers who face the biggest increases. Over the last 12 months the 17-24 age group has seen the average premium shoot up by 24.87%. So when someone first starts to drive they can now be expected to pay a massive £1,489, up from an already enormous £1,275 last year.

The smallest rise in premiums was witnessed in the over-65s group of drivers, who have only seen a rise of half of that which younger drivers have to pay. Men saw a rise of 20% throughout the year to £599, and women saw a rise of 19% up to £523.

This all adds up to a massive £2.1 billion extra in car insurance premiums over the last 12 months.

The rise is due in part to the increase in personal injury claims. As claims go up, the money has to come from somewhere, and insurance companies can only turn to their customers to make up the difference. Increasing levels of fraud are also being blamed for the rises.

The fear now is that more drivers, especially young ones, will take one look at the insurance premiums and be tempted to drive without insurance, which could have terrible consequences.