Insurance prices spike again

Comprehensive motor insurance premiums have continued on an upward trajectory during the first quarter of 2017, and are now 16% higher than this time last year.

According to figures from Confused.com, the average premium is now up to £781. Meanwhile, the research also found that prices for fire and theft policies went up by 7.9% in the last quarter, increasing the average quoted premium by £103 to £1,414, an annual increase of 25.4%.

It found that a 1.8% fall in January was almost immediately cancelled out with March prices spiralling 3.5%.

Steve Fletcher, head of data services at Confused.com said, ‘Drivers across the UK are seeing car insurance prices accelerate and there seems to be no signs of slowing. With prices having risen 16% annually, the average driver is now paying a whopping £781 for their premiums, £110 more than they were paying this time last year.

‘And as the industry adapts to additional pressures, such as the drastic Ogden rate cut and the hike in IPT to 12% from June this year, we could be on course to drive past the £858 peak we saw in 2011. As car insurance costs continue to climb, average premiums could even break the £1,000 barrier by next year.’