Car insurance prices 'unlikely to fall' with costs to remain an issue 'well into next year'

A staggering 92 per cent of Britons saw a sharp increase in their motoring expenses, with insurance and the price of petrol and diesel having the biggest impact.

Drivers are cutting back on a range of factors, most notably reducing spending on clothing (54 per cent), avoiding eating out (52 per cent) and turning off the heating (43 per cent).

WATCH NOW: Car insurance prices hammering drivers 

The latest data shows that drivers are paying an average of £924 a year, with prices rising by £338 in the last year alone.

Drivers in London are facing average costs of £1,503, while younger drivers who have recently passed their test will be forced to pay more than £2,000.

Car insurance prices have rocketed in recent months and years, with some unlucky electric drivers even being quoted with a £5,000 policy.

Kevin Pratt, car insurance expert at Forbes Advisor, said: “Car insurance hikes are causing a lot of financial hardship.

“Insurers are putting up prices because their own costs are rising, with car repairs costing more and taking longer thanks to a shortage of trained staff and supply chain bottlenecks.

“And like other businesses, they’re paying higher energy bills and wage costs - these all get passed on.”

The expert also warned that premiums are “unlikely to fall” until levels of inflation begin to drop.

Earlier this week, the Government announced that the rate of inflation was stuck at 6.7 per cent, with petrol and diesel prices increasing.

There is some optimism that inflation did not increase, but global instability with the war in Ukraine and the conflict between Israel and Hamas potentially causing problems to rage on in the future.

Mr Pratt said high premiums were likely to remain an issue “well into next year”, with fuel prices expected to follow a similar pattern.

He added: “If you’re coming up to renewal for your car insurance, start shopping around early as insurers charge more the nearer you get to renewal.

“Receiving your renewal notice from your current insurer is a good indicator that it’s time to start hunting a better deal - never automatically renew without checking what else is available.”

Some drivers may be able to secure a slightly cheaper car insurance policy, namely those who are over the age of 38.

Comparisons of car insurance quotes found that people older than 38 see their policies fall to below £1,000.

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Experts have continually urged motorists to use comparison sites to see the best options available to them in the hopes of avoiding a costly renewal price.