Car insurance rises again

Car insurance premiums rose again in the third quarter of 2018.

According to Car Insurance Price Index, in association with Willis Towers Watson, comprehensive car insurance premiums increased by an average of one per cent. This small increase brings an end to the series of decreases across four consecutive quarters.

UK motorists are now paying £760 on average, which is still £78 less than they were paying this time last year, according to the most comprehensive car insurance price index in the UK, which is based on price data compiled from more than six million customer quotes per quarter.

Stephen Jones, UK Head of P&C Pricing, claims, product and underwriting at Willis Towers Watson, said, ‘The significant reductions seen over the past year would have been difficult to sustain due to ongoing pressures on repair costs and the continued uncertainty surrounding both the timing and impact of the Civil Liability Bill and the anticipated adjustment to the Ogden rate.’

Comparing the regions, drivers in the South West of England saw the largest quarterly rise in prices at three per cent, increasing their annual premiums to £566 on average, however they still benefit from the cheapest prices across the board. Meanwhile, drivers in Northern Ireland experienced the greatest quarterly drop with their insurance premiums falling on average by over two per cent to £873.

As ever, male drivers aged between 17 and 20 are still paying the most of any demographic – £2,306 on average. However, those that experienced the greatest quarterly rise were female drivers aged 71 and over, who saw a four per cent price increase taking their annual premiums £424.