Cost Of Car Insurance Goes Up

Motorists will be disappointed to read that the cost of insuring their cars has gone up over the last year for many policyholders according to the Car Insurance Price Index. Although the index relates to insuring standard vehicles it is quite possible that the cost of insuring a classic car has also risen.

The above index is produced on a quarterly basis and, according to the most recent one published for the third quarter of 2019, the average cost of fully comprehensive cover has risen by £23 in the twelve month period to the third quarter of 2019. That equates to a rise of 3%. The average cost of such cover was £783 per annum.

On a positive note, premiums have fallen slightly when compared with the second quarter of 2019 when the average cost of such cover was £789 per annum.

It is the younger motorist who pays more for their car insurance. The most expensive cover is for those aged 18 with the average cost of fully comprehensive car insurance costing £2,067 per annum. That is more than some young drivers will be paying each month in car loan repayments. The biggest rise in premiums is for drivers who are 23 years of age who have, on average, seen the cost of their cover going up by £45 per annum over the last year to £1,306 per annum.

The index also looked at the average cost of such cover on a regional basis and found that Northern Ireland motorists saw the biggest increase in premiums. In the last year, premiums have risen by 8% to an average of £942 per annum. That is an increase of £69 per annum. The region where motorists pay the most is in Inner London with premiums averaging £1,213 per annum.

The above figures are concerning and it is to be hoped that premiums start to fall going forward. We will continue to update our readers periodically about the cost of car insurance in the coming months.

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