Car insurance premiums are now 12 per cent higher than they were at the same time a year ago, according to new analysis from MoneySuperMarket.
The company analysed over 850,000 quotes run on their website during November 2016 and found annual premiums are now £597 on average, shockingly almost £100 more expensive than they were at the start of 2016.
Premiums have increased steadily during 2016 and seen particularly sharp rises in the last few months. In August the average premium stood at £525, rising to £549 in September, £572 in October and £597 in November – a four per cent rise in just one month.
Kevin Pratt, consumer affairs expert at the company, said: “Motorists won’t be feeling much Christmas cheer when they read the news that car insurers are bumping up premiums by almost 12% a year. Alongside rumours that petrol prices are heading back towards £1.20 a litre, it’s a punishing time for the nation’s wallets and purses.
“The government has committed to introducing reforms to tackle whiplash fraud, but we’ve heard this story before and need to see concrete action that brings down premium inflation as a matter of urgency. This is especially the case given that the Chancellor, in last month’s Autumn Statement, announced a 20% increase in Insurance Premium Tax from next June, up to 12% on all car and home insurance premiums.
“It’s important for every motorist approaching renewal to run a quote to find the best price for their next year’s policy. Simply rolling the policy over with the same insurer – what’s known as ‘auto-renewal’ – means you’re almost certainly paying more than you need to. We’ve found that motorists can save over £280 on their insurance by shopping around.”