Motorists are facing a substantial 52% increase in the cost of car insurance, according to new Premium Drivers research from Compare the Market.
The typical premium stands at £950 at the end of December 2023 after rising by £326 over the previous 12 months.
The significant rise in the cost of car insurance may in part be due to a rise in the cost of claims for insurers.
High inflation rates will have likely impacted many areas of the motor repair industry including the cost of spare parts, energy, and hiring specialist mechanics.
The growth of pure electric vehicles has also impacted figures as they cost more to repair or have to be scrapped because they become beyond economic repair and their higher prices hit premiums when taken out.
Young drivers, aged under 25, have seen the steepest increase in the cost of car insurance. The typical premium for motorists in this age group has jumped by £655 year-on-year to £2,002.
Drivers aged over 65 have seen the largest proportional increases in premiums as the cost of car insurance for this age group has risen by 57% on average in the past 12 months.
Analysis also showed BMW owners suffered the highest rise in 12 months,
