By Ilaria Grasso Macola
The average car premium has soared 17.4 per cent in the past year, according to recent research.
Data published today by market researcher Consumer Intelligence shows that average premiums now cost £877, surpassing by 6.7 per cent current inflation rates.
According to senior insight analyst Georgia Day, the unsurprising surge has been driven by the Financial Conduct Authority’s decision to ban price walking.
The financial watchdog in January banned car and home insurers from offering more competitive pricing to new customers, saying the measure was to detriment of loyal customers.
“What is surprising however is the number of product launches we are seeing, especially the growing number of essential products,” Day added.
Older drivers continue to bear the brunt of prices rising as their premiums are up 21 per cent in the past year.
Nevertheless, they continue to pay the lowest of all age groups, as the average insurance is £449.
Drivers aged between 25 and 50 have seen their annual premium go up by 19.1 per cent to £645, while under 25 motorists have reported a 9.1 per cent increase to £1,813.
Geographically, Londoners are those who pay the most for their insurance, as on average it costs £1,346, followed by the North West at £1,256.
The East Midlands is the cheapest region, with an average premium of £463.
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