Insurance premiums are rising again.
Dan Hutson, head of motor insurance, comparethemarket.com, said, “After motor premiums reached their lowest level in over four years last month, they are now back on the rise.
“The average car insurance price during May was £715, an increase of £36, or 5%, on April. As lockdown eases and more cars are returning to the roads, claims are likely to be increasing, with a consequent impact on premiums.
“Premiums are now just £3 lower than the same month a year prior, indicating that the opportunity for cost-savings on car insurance as a result of the coronavirus pandemic may have come to an end, for the time being at least.”
He added, “Premiums remain highest for younger drivers aged between 17-24, who pay £1,123 on average – £763 higher than over 65s, the age group that pays the least. The cheapest region to insure a car is the South West, where motor insurance premiums are £540 on average. Drivers in London can expect to pay nearly double this amount, with average motor insurance premiums currently standing at £1,089.”
