Car insurance set to reach £900 in 2018
UK drivers are now paying £827 on average for their car insurance, according to Confused.com’s latest car insurance price index (Q4 2017), powered by Willis Towers Watson.
Confused.com’s index reveals prices have accelerated by a whopping £60 (+ eight per cent) since 2016 (Q4) when premiums were comparatively cheaper at £767.
As we enter 2018, motorists are already feeling the pinch following a £3 (0.4%) car insurance price hike in December, in addition to the cost of fuel rising by 0.5p for petrol and 0.7p for diesel in the past week.
Premiums are set to reach their most expensive levels ever by the end of 2018 and are just £31 short of the highest average price in 2011 (Q2, £858). This is following two years of almost consistent price increases amounting to a +23% rise.
According to Confused.com’s fuel price index, which collates prices from 83% of the UK’s fuel stations, drivers are now paying 121.4p for petrol and 124.2p for diesel, on average. This means that the average driver of a medium-sized car is now paying £69.18 for a full tank of petrol and £70.77 to fill up with diesel.
With further taxes being imposed on diesel drivers this year, plus climbing interest rates predicted for 2018, it looks like it is going to be an expensive year for motorists.
Louise O’Shea, CEO at Confused.com says, ‘It looks like the average cost of car insurance is going to be over £900 in 2018 – the highest ever. The good news is that insurers now have to show us what we paid for car insurance last year. Therefore, it’s never been easier for drivers to check what they paid then and compare it to what they are asking you to pay now.
‘January is always a difficult month after the excess of Christmas and that is true for drivers’ wallets too. The team and I at Confused.com want to help, and are guaranteeing to beat the price your insurer is charging you.’