Car insurance rises by 18 per cent over the year

Car insurance has risen by 18 per cent on average over the past year – with youngsters being hit the hardest.

That’s according to Compare The Market, which said the typical premium had risen by £132 over the past 12 months, standing at £850 in May 2024 versus £718 in May 2023.

The comparison site’s research shows that drivers over the age of 80 have seen the steepest proportional increase in their insurance – 27 per cent up on average, with the annual payment now £139 higher at £656 compared with £517 last year.

However, drivers aged under 25 took the biggest hit to their wallets. Their average annual payment is now £1,901 versus £1,591 in May 2023 – an extra £310, or 19 per cent.

Compare The Market director Anna McEntee said: “The substantial cost of car insurance is understandably causing concern for many motorists.

“Our research shows motor premiums have risen by more than £100 year on year.”

She added: “Drivers aged under 25 and over 80 are seeing the steepest increases.

“Typically, insurers consider motorists in both age groups as more likely to make a claim, which could lead them to see higher premiums.”

But the average annual premium overall has declined by £80 month on month from April 2024, when it was £930, to £850 last month – a drop of nine per cent.

The peak of the recent spike in car insurance was in November 2023 when the average annual premium reached £951.