Comparethemarket.com: Cost of average car insurance soars to record high

 
Jessica Morris
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Young drivers have been particularly hard hit (Source: Getty)

The cost of an average car insurance premium has soared to a record high, according to new data from Comparethemarket.com.

The comparison website's motor insurance index has shown average car insurance premiums across all age groups currently stands at £675.61, the most since 2012.

It added that the main reasons behind the jump in costs are the increase in the insurance premium tax, falling competition in the market as well as a cyclical hardening market.

Read more: Driving down costs of car insurance

"The cost of motor insurance at the moment is not where most consumers would want to see it. Having enjoyed several years of falling prices, premiums are rising sharply," Simon McCulloch, director of insurance, Comparethemarket.com, said.

Young drivers have been particularly hard hit, with 17 to 15-year olds likely to pay around £1,000 to insure their car, the most since February 2013.

“Young drivers are always at the sharp end of price rises and this cycle of price hikes is no exception," McCulloch added.

"Telematics policies may offer an escape route to these hefty premiums, but only for those drivers who are willing to have their driving monitored."

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