Motor insurance costs rise as average policy £1,000 after rising 34 per cent in a year – with those under 25 facing £2,145
- The average policy is now £1,082 after the biggest increase since 2013
- The increase in costs is due to factors such as inflation and supply shortages
The cost of motor insurance is up 34 per cent in a year as the average policy exceeded £1,000 for the first time in six years.
The average policy is now £1,082, while those under 25 could pay £2,145 as they are considered more risky.
Meanwhile, customers between the ages of 25 and 50 see a 36.4 percent increase, according to Consumer Intelligence research.
Rising costs, due in part to inflation, supply shortages and higher claims handling costs, mark the largest increase since tracking began in 2013.
Even in the month of February to March, there was an increase of 14.4 percent. EY predicts costs will rise again by 11 per cent (£59) per policy next year.
The cost of car insurance is up 34 per cent in a year as the average policy exceeds £1,000 for the first time in six years
If drivers have to make a claim, the average deductible they have to pay has increased by 10.9 per cent to £204.
Consumer Intelligence’s Max Thompson explained The times that the premium increase is ‘alarming’ and ‘unprecedented’, especially given the high costs for younger drivers.
One way to potentially lower your car insurance payments is to prove to a company that your mileage has decreased, such as if you started working from home more often.
Companies will consider mileage as an important element in determining the risk associated with insuring a vehicle.
Depending on your car, you have a mechanical or digital odometer that helps you keep track of your mileage.
Usually, the more kilometers you drive, the greater the chance that you will be involved in an accident.
Some companies offer low mileage discounts – usually if you drive less than 7,500 or 8,000 miles per year, or about 21 or 22 miles per day.
Auto insurance premiums are also determined by body type, with pickups and SUVs among the most expensive to insure, according to a survey by ValuePenguin earlier this year.
Other ways to try to reduce your costs include trying to take advantage of discounts such as loyalty programs, multiplied policy discounts, or a claim-free or violation-free discount.
Coverage insurance may be a good option for those who do not drive often.
The average policy is now £1,082 while those under 25 could pay £2,145 as they are considered more risky (file image)