Monday 15 July 2019 12:01 am

More price hikes to come as car insurance premiums climb 3.5 per cent

Car insurance premiums look set to climb further, experts have warned, after a 3.5 per cent price hike last quarter.

It comes as the third price rise in four quarters, meaning the average car insurance price hit £789, up £27.

Read more: Half of motorists think charging loyal car insurance customers more should be illegal

Drivers in inner London faced the biggest hit, with prices rising £61 to £1,214. Prices on the Scottish borders region only increased 0.5 per cent to £582.


“Hikes to insurance premium tax and changes to the personal injury discount rate have been key drivers behind prices fluctuating up and down over the last two years,” said Graham Wright at Willis Towers Watson, which performed the study with Confused.com.

The price increase was spread over all age groups, the study found. Women drivers over 71, whose prices fell in the first quarter, saw an eight per cent rise in the second.

Read more: Watchdog warns general insurers over value for money and high commissions

“Premiums are likely to continue their upward trajectory in 2019,” a statement from the firms said.

The data is gathered through analysing the car prices quoted to nearly 6m customers.

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