Car insurance rates increase to new national £843 average

After being found to have increased by around 12.3 per cent over the past 12 months, the average car insurance rate for the UK now stands at a new high of £843 for comprehensive motor car insurance cover.

New research data from the insurance price index jointly released from car insurance comparison site and global consultancy firm Towers Watson indicates that comprehensive cover rose by around £92 for the average motorists over the last 12 months.  Meanwhile, motorists taking out third party, fire, and theft cover suffered even more, with a 19.9 per cent increase working out to a 12 month increase of more than £190.

The North of England was the site for the largest yearly price hikes for comprehensive insurance, according to the research study, which used in excess of four million insurance quotes for its data sample.  Bradford motorists saw their average insurance price rocket by 27.5 per cent in comparison to last year, which took the regional average price to nearly £1,400, but Oldham suffered even more with a 27.9 per cent increase year-on-year, leading to average premium prices of almost £1,440.

Further north and annual price increases dropped to nearly nothing, with Scottish drivers living in Kirkwall and Perth both experiencing less than 1 per cent increases.  Kirkwall’s average annual price rose 0.8 per cent to £620, while Perth motorists got off nearly unscathed with just a 0.3 per cent rate hike to £564.

While these year-on-year hikes have made it harder for motorists to afford to keep their cars on the road, some relief was to be had during 2011’s third quarter, with the national comprehensive policy price dropping by 1.6 per cent during this time period.

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