The new high represents not only a £31 increase throughout the past three months but a £220 hike in comparison to the price of motor car insurance 12 months ago. However there is some good news in the form of an overall year-on-year slowing effect, said the survey.
Cheap car insurance has been becoming harder to find with price increases on third party, fire, and theft car insurance as well as comprehensive cover. However these increases have not been as steep as they have been, with rate increases slowing consistently over the past three months.
The first three months of 2011 saw the average comprehensive policy rise in price by 3.8 per cent. However 2010’s final quarter saw even larger price hikes with 7.1 per cent. This means that the annual price inflation rate for the insurance cover stands at 35.7 per cent, which represents the first reduction for nearly three years straight.
TPFT cover increased by 6.3 per cent in the first quarter of 2011, while the past 12 months have seen it rise by 53.6 per cent. The average price of a TPFT insurance cover stands now at £1,121.
Confused.com head of motor, Gareth Kloet, stated that the research findings show that there are still good deals to be had despite the recent price increases. Mr Kloet stated that many comparison websites are offering premium increases that were much lower than the average throughout the last quarter for younger motorists – specifically younger men.