This is how many people will ditch their car insurer this year, as the costs of premiums continue to rise
It's not you, car insurers. It's the constant rise in premiums.
More than 11m drivers will leave their car insurer in 2016, as rising premiums boost people's incentive to shop around, a study out today has found.
According to the figures from Consumer Intelligence, the average quote for car insurance has risen by £22 this year, compared with the £11 rise seen by consumers last year.
Those aged 50-plus are likely to be most displeased with their quotes from their insurers this year, as prices increased by 15.3 per cent on average for people in this age group, compared with only 9.3 per cent for those in the under-25s category.
Rises in the rate of insurance premium tax are probably at least partly to blame for the price hike, which has pushed the number of people shopping around for insurance to a three-year high.
"The message on rising car insurance premiums is really hitting home and drivers are making the sensible decision to look around for the best possible deal," said Ian Hughes, chief executive of Consumer Intelligence.
Insurance premium tax was raised from six per cent to 9.5 per cent in the 2015 summer Budget, before being hiked again to 10 per cent in the 2016 Budget.
The new 10 per cent rate will apply from October this year and the raise in the rate is forecast to raise £900m by tax year 2020/21. In his Budget speech, chancellor George Osborne said that the money raised from the increase would be put towards flood and storm defences.