The cost of fully comprehensive car insurance rose by 7.6 percent in the final three months of 2021, well above the rate of inflation.
It means the average fully-comp car insurance policy is now £443, up from £412 in autumn 2021.
After a major drop at the start of 2021, research by Moneysupermarket shows prices were still down 6.6 percent year-on-year. However, they have started creeping back up over the past three consecutive quarters.
Londoners are still paying the most for car insurance, with an average premium of £616. Those in the North West pay an average of £509, while West Midlands motorists pay £504.
Motorists in the South West pay the least, with the average premium at just £295 – more than £320 less than a typical Londoner pays.
Meanwhile, in terms of age profiles, it’s those aged 21-24 that are faced with the highest premiums, averaging an eye-watering £857.
‘Remain vigilant’
Car insurance prices have been on an upward trajectory since the standout lows seen at the start of 2021, says Moneysupermarkets’s Sara Newell, “with figures for the last quarter showing the most unwelcome jump yet.
“If you’re a driver, it’s really important that you stay vigilant to price rises – particularly against the backdrop of price rises across lots of other household bills and consumer goods.
“If you’re nearing the end of your policy, make sure you shop and around for a new deal to avoid losing out.”
Newell added that, although new rules from the FCA addressing unfair pricing for new and renewing customers are welcome, “it’s important to recognise that these measures alone won’t save you money.
“The only guaranteed way of saving money on your car insurance is to shop around for a new deal. Doing so through Moneysupermarket could save you up to £264.”
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