With new data driving it home, it looks finding a cheap car insurance policy is just getting increasingly harder to find for nearly everyone.
We’ve been sounding the alarm for a while now, what with our constantly reminding you that affordable motor car insurance is going to be practically impossible to find as time goes on. Now, there’s even more cold, hard data to back it up, with figures from Consumer Intelligence pointing out that annual prices have gone up year-on-year by a troubling 13 per cent. What’s the average price you can expect to pay now for a year’s worth of car cover? Around £683, the study found – though if you’re over the age of 50, you can expect to see the biggest proportional increases.
The hikes to the Insurance Premium Tax, courtesy of last November, have been driving rates into the stratosphere. The IPT used to hang back at around 6 per cent, which was bad enough, but now every time someone buys insurance cover in the UK there’s a 9.5 per cent fee being paid instead. Are we having a good time yet? Full disclosure: I’m not.
But didn’t I say over-50s get the shorter end of the stick? Yes, that’s true as well. Instead of just having to weather a 13 per cent rate hike, averages are closer to 15.3 per cent. It’s the worst of the worst. Of course, older motorists had a lower premium to start with, which means the average in real cash money is £298 a year. I suppose age does have a few privileges left to it.
Meanwhile it’s a double-edged sword for younger Brits as well. Under-25s have always had to pay more because they’re inexperienced, but now their average rates are around £1,600 per annum. Cold comfort is that their premiums just jumped by around 9 per cent instead. Yes, “just” 9 per cent. What a bargain!
So is there any hope? Not really. Prices will keep going up until we’re all drowning in debt, having to remortgage our homes to pay for insurance cover on our 1997 Vauxhall Astras that are worth more as raw scrap than they are as functioning motor vehicles. Or you can beggar yourself taking public transport, choose your poison mate.
Well at least petrol is cheap right now. You can band together with the entire council estate and buy a litre or two for the shared communal car just in case.