Car insurance costs could 'price drivers off the road' with biggest rise on record
Car insurance costs are hammering drivers with price rises
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British drivers are now paying an average cost of £776 for car insurance, with prices increasing by £119 in just three months.
Based on more than six million quotes over the last three months, costs have risen by 18 per cent, making them £222 more expensive than the same time last year.
According to the research, this makes it the biggest price increase on record, with car insurance now being the third most expensive household bill.
Only council tax and energy bills are on average more expensive than car insurance for motorists around the UK.
Fuel prices are contributing to the cost of motoring
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It is believed that price increases are being seen as a result of the after-effects of the coronavirus pandemic.
During that time, very few people were on the road meaning that accidents fell to lower levels and premiums decreased.
However, it is believed that driving habits have now returned to normal, with accidents going back to pre-pandemic levels.
With more car crashes taking place, insurers are now having to pay out larger sums for more claims than two years ago.
Louise Thomas, motor expert at Confused.com car insurance, said: “Car insurance has quickly become one of the biggest expenses for drivers.
“If prices continue at this rate then there’s no doubt drivers could be priced off the road, as they battle with other rising costs too.
“In the current climate, we want to help drivers do all they can to make their insurance more affordable.
“But we know the key to this will be shopping around and seeing what the best price out there is. It’s a competitive industry and we’re confident that switching will result in savings.”
Despite massive price hikes, some drivers are finding ways to save money by shopping around.
In the past three months, motorists who changed their car insurance saved £63 on average, with only nine per cent reporting a cheaper renewal price year-on-year.
Two in five motorists are calling on insurers to do more to make the cost of car insurance cheaper and more manageable amid the cost of living crisis.
The research also showed that the average cost of motoring is approaching £2,000, with most drivers spending around £720 on fuel and another £455 on maintenance.
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Drivers spend around £455 on maintenance each year
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If drivers have the means to do so, they are advised to pay for their car insurance in one go, rather than pay monthly as they will not have to pay any interest for spreading it out.