- Confused.com Car Insurance Price Index Q2 2015, reveals an annual price rise of 3.6%
- Average quoted premium now stands at £600
- 17-year-olds enjoying lowest ever premiums
UK: Comprehensive car insurance premiums have started to rise during the second quarter of 2015, with motorists now paying £21 more than they were this time last year, according to the latest Confused.com Car Insurance Price Index in association with Towers Watson.
This means that the average quoted premium for an annual comprehensive car insurance policy now stands at £600 in Q2 2015, compared to £579 in Q2 2014.
Motorists had enjoyed three years of continually falling premiums, however the last 12 months have seen a steady increase in prices, equating to an annual increase of 3.6%, and a most recent quarterly increase of 1.5% (£9). The latest rise continues a previous run of two successive quarters in 2014 when average prices went up, after a brief pause in the prevailing rising trend during Q1 2015.
However, whilst drivers across the UK are facing both quarterly and annual price hikes, younger drivers (aged 17) still have reason to rejoice, as their premiums have in fact fallen year on year, by 6.4% (£128), and quarterly by 1.7% (£32).
As a result, 17-year-old drivers are now enjoying their lowest ever premiums, with the average annual comprehensive car insurance policy for this age group now standing at £1,869 – 50% less than in Q3 2011 when their policies were a staggering £3,729 on average.
Although it’s a different story for the older generations, with motorists aged 59 facing the greatest average increase over the last 12 months of 7.8%, bringing their premium up year on year by £28 to £384, compared to £356 in Q2 2014.
Women aged 66-70 have been hardest hit. Drivers in this demographic, who are insured with a spouse, are facing the largest increases of all across the quarter, with prices rising by 17.5%. For this group of motorists, their premium now stands at £220, an increase of £33 in the last 3 months.
Both men and women have seen their premiums rise year on year, with increases of 4% and 3% respectively. The average man’s premium now stands at £627 (+£25 year on year), and women’s at £566 (+£15 year on year).
Steve Sanders, Finance Director at Confused.com said: “We’ve seen insurance premiums fall steadily over the last few years, which has been welcome news for motorists, however it looks like the end of the road for continuing price drops.
“Despite enjoying a brief reprieve in the first quarter of 2015, market movements in the last 12 months suggest consumers should prepare themselves for price rises to continue for the rest of 2015. The last time we saw this sort of premium change pattern we were at the beginning of three years of consecutive comprehensive premium increases.”