Premium prices spike 19% in three months

Motor insurance rose 19% in the third quarter of the year to reach a new high of £924.

Over the year, premiums have shot up 58%, or £338, compared to this time last year.

This is according to data from price comparison site Confused.com, which says this is the highest annual increase since it started tracking premium prices in 2006.

Younger drivers have been hardest hit, with 18-year-olds paying an average of £2,995 for an annual policy, which is a rise of 89%, or £1,414, in the last 12 months. Meanwhile, the average annual policy for 17-year-olds has shot up 93% to £2,613.

Rises have been attributed to higher repair costs, especially for electric cars, a shortage of parts meaning longer repair times, and higher mobility prices.

Louise Thomas, motor expert at Confused.com car insurance, said: “For another consecutive quarter, we’ve seen some of the highest inflation rates when it comes to car insurance. With prices up on average £148 in just three months, and £338 in 12 months, drivers are likely to be paying more than ever. So those who haven’t yet been affected should be wary of how pricing may affect them at their next renewal.”