The cost of car insurance is rising five times faster than inflation and over-50s are suffering the biggest hike in prices, figures have shown.
According to Consumer Intelligence, the average car insurance premium price now stands at £755 following an average increase of 14.6 per cent in the last year – five times the 2.9 per cent level of inflation.
Motorists aged 50 or over have seen the biggest rise in the cost of their premiums – an increase of 16.5 per cent in the year to September. However, their bills are still lowest for all age brackets at £434 annually.
Drivers aged under 25 are the worst off, paying almost four times the amount charged to over-50s at £1,719 per year following an 11 per cent increase in premium prices.
Londoners and residents of the North West pay the most for their premiums, which stand at more than £1,000 annually, on average – almost double the £518 paid by Scottish drivers.
John Blevins, Consumer Intelligence pricing expert, said that prices have been rising in light of new legislation concerning whiplash claims, an insurance premium tax rise in the Budget and the new Ogden rate, which sets the amount insurers have to pay out in the event of a claim.
He added that claim costs have increased in the past three months “partly because we are driving more technologically advanced cars, which cost more to repair, but also because the weakness of the pound means the cost of parts is rising”.
To avoid unnecessary car insurance claims, it can pay to have your car serviced regularly, especially now that autumn has officially set in. For car servicing in Hillingdon and Uxbridge, contact Courtwoods today.