Car insurance prices will 'continue to rise' with drivers urged to 'feel more in control of their finances'

Certain motorists, namely those under the age of 18, are paying astronomical prices, at an average cost of £2,960 following a 23 per cent annual increase.

This comes at a time when many motorists, regardless of age, are struggling with their costs, and many feel that car insurance companies should be doing more to help hard-pressed drivers.

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Motorists are consistently urged to shop around to save on their costs by comparing prices and finding what the best quote is for them, based on their needs, although some are still hesitant to do so.

One expert has suggested that insurance providers should introduce new guidance to ensure drivers are able to save on their policies without being overcharged.

Kevin Pratt, car insurance expert at Forbes Advisor, spoke to GB News about the rising prices, saying: “Many drivers may have been surprised to see the cost of their car insurance surge in recent months.

"The significant rise in the cost of car insurance could in part be due to a rise in the cost of claims for insurers.

"The rapid rise in inflation will have likely impacted many areas of the motor repair industry including the cost of spare parts, energy, and hiring specialist mechanics."

The new Labour Government has identified car insurance as a key issue that needs to be addressed, with estimates showing that one million people cancelled their car insurance as a result of cost pressures in 2022.

Keir Starmer's party said it would take action by calling on the Competition and Markets Authority (CMA) and Financial Conduct Authority (FCA) to launch urgent investigations.

It said this would include investigating whether postcode pricing practices were unfairly targeting ethnic minorities and those on lower incomes.

Louise Haigh, the new Transport Secretary, said Labour would crack down on soaring car insurance costs, in addition to tackling potholes and removing planning barriers for public electric vehicle charging stations.

Data suggested that a male driver between the ages of 17 and 20 living in inner London will likely see the most expensive costs, with an average price are £4,480, in addition to a 13 per cent jump over the last

Pratt continued, saying that insurance providers will look at various factors when determining the price of a policy such as their address, occupation, age and what vehicle they are driving.

He added: "Ultimately, the cost of your car insurance premium is based on how likely your insurance provider thinks you are to claim, and how substantial any claim could be.

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"One way that could help motorists feel more in control of their finances as car insurance prices continue to rise is to compare prices online and check they are getting the right deal for them.”