Drivers are paying almost £1,000 for their car insurance as policy prices reach their highest-ever level as experts urge Britons to take action.
UK drivers are now paying an average of £995 per year for their car insurance – a dramatic £366 (58 per cent) increase compared to the same time last year.
According to the new data from Confused.com, drivers are now facing record-breaking prices in the UK, after the comparison site analysed more than six million quotes per quarter.
Experts are also warning that prices could continue to rise and that drivers may pay “significantly more” for their premiums if they fail to compare prices and simply renew.
Drivers will face average costs of almost £1,000 for their car insurance policy
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Around three-quarters of Britons who received their renewal quote last quarter saw the price increase by £93, on average.
Just 37 per cent of people chose to shop around and take out a new policy with a different insurer, although those people would have saved an average of £96.
Some drivers are being hammered more than others by the expensive car insurance costs, including motorists aged between 17 and 20 who have seen their premiums rise by more than £1,000.
Drivers aged 17 will now pay £2,877 a year, based on a year-on-year increase of £1,423, while 18-year-olds will pay more than £3,000 for the first time.
Newly qualified drivers reached £3,162 on average as they face an 84 per cent increase based on the same time last year.
Generally, drivers up to the age of 43 can expect to pay an average price of £1,000 or more for their car insurance.
Louise Thomas, motoring expert at Confused.com car insurance, said: "Like a lot of our expenses, car insurance is getting more costly.
“And this is likely to be the case for some time. Claiming is one of the biggest factors when it comes to insurers pricing up policies.
“And with the cost of paying out for claims being considerably high, insurance prices are going to be too.”
Experts have highlighted how there could be some light relief for drivers as prices only increased by eight per cent or £71 in the last three months – a considerably lower increase than the changes over the last six months.
Louise Thomas has called on motorists to use price comparison sites to lower the costs they face when renewing, as well as paying annually as they can avoid paying any interest.
She added that drivers who choose to increase their voluntary excess can help them get cheaper car insurance, although they must ensure that they can afford to pay it if they need to claim.
Improving the security of their car will also have a huge boost to drivers when they come to renew their insurance, with many drivers already taking matters into their own hands after a large rise in car thefts in recent months.
The expert continued, saying: “Things like increasing security, reviewing how many miles you drive or adjusting your excess could bring your overall cost down.
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“But it’s important to remember that the information you’re providing should be accurate otherwise you risk invalidating your policy if you need to make a claim.
“Ultimately, shopping around is the only way to know you’re paying the cheapest price available to you. With prices so high, it’s a very competitive market.”