Average car insurance premium up £90 over last year, analysis shows

The average car insurance premium has surged by £90 over the last year, according to analysis.

At £666, the typical annual premium across Britain is now just over 15% higher than a year ago, a hike of more than five times the Consumer Prices Index rate of inflation at 2.9% in May, Consumer Intelligence said.

Nearly half of this increase was found to have taken place during the three months to May.

Drivers aged between 21 and 24 pay the highest prices on average, at £1,202, but have seen slightly lower annual premium increases at 13.1%. Over-50s motorists are experiencing the biggest rises at 17.9% but pay premiums of £418 typically, the research found.

Motorists in London typically pay the highest average premiums of £1,000 across the country, more than double the £474 average bill in Scotland and the South West of England.

John Blevins, a pricing expert at Consumer Intelligence said the full impact of a recent hike in the rate of insurance premium tax (IPT) was yet to show up in the figures, so drivers would need to shop around to limit the hikes to their premiums.

But he continued: "There is some relief from plans to push ahead with whiplash reforms announced in the Queen's Speech."

Premiums were calculated by comparing the prices offered for 3,250 people by major price comparison websites and direct insurers.

Here are the average premiums and increases over the past year across the country, according to the calculations by Consumer Intelligence:

- London, £1,000, 16.7%

- North West, £867, 15.7%

- West Midlands, £748, 13%

- Yorkshire and the Humber, £658, 15.7%

- North East, £646, 18.9%

- Eastern England, £574, 16.5%

- East Midlands, £553, 17.6%

- South East, £549, 13.5%

- Wales, £539, 14.4%

- Scotland, £474, 16.6%

- South West, £474, 15.9%

The cheapest cars to insure
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The cheapest cars to insure

Price new: £5,995

Dacia has made a big impact in the UK with its line of affordable motors.
The Sandero is the foundation of the brand's offering and is famed for being the UK's cheapest car.

With a group two insurance classification it's also one of the cheapest cars to insure right now.
The entry level Access model is sparsely equipped, but it has a practical interior, big boot and low running costs.

Price new: £8,060

The Seat Mii is a small city car which Auto Express praises for its spacious interior, good build quality and supple ride.

All models are in insurance group one, bar the group two Sport version.
The Mii is available in three-door or five-door styles, but both measure just 3.5 metres, making it perfect for getting around town.

Price new: £8,090

The Skoda Citigo was crowned Auto Express Best City Car 2013.

The magazine praised its low running costs and practicality as well as its grown up driving experience.
Like its Mii stable mate the Citigo has group one insurance in all apart from its top specification model, making it one of the cheapest cars to insure.

Price new: £8,265

The third of the Volkswagen's group of three city cars to make the list is the Up!

Auto Express says the Up! was 'born to rule' city streets with its small dimensions and lightweight body.
There's three versions of this fun city car; Take Up! has a group one rating as does Move Up! while the higher spec High Up! gets a group two classification.

Price new: £8,345

The Hyundai i10 is another car which can get you a cheap insurance quote thanks to a group one insurance rating across all the 1.0-litre petrol models.

Auto Express says the new 2014 i10 offers big car features in a small package. And for £8,345 you also get Hyundai's five-year warranty and roadside assistance package.

Price new: £8,995

Vauxhall has managed to squeeze one of its full sized Corsas into insurance group two.
Auto Express says the 1.0-litre ecoFlex model has the lowest insurance costs of any mainstream supermini.

The eye-catching design, solid interior and big-car features make it an appealing buy for drivers.

Price new: £9,575

The Smart car caused a bit of a stir when it first appeared thanks to its dinky dimensions and bold two-seat layout, making it very useful for driving about town and absurdly easy to park.

The Smart ForTwo is the latest incarnation, which keeps to the same formula; it still has only two seats and is one of the smallest cars on the road measuring just 2.5 metres long,
The entry level 0.8- and 1.0-litre models qualify for group two insurance.

Price new: £11,810

The Peugeot Partner Tepee 1.6 VTi is the passenger version of the Partner van and according to Auto Express easily the most spacious new car that currently qualifies for a group two insurance rating.

It's got a boxy shape that provides plenty of room and has sliding doors which make it a very practical and flexible family car.

If you're after something smaller the Peugeot Bipper Tepee, which is the smallest of Peugeot's family of Tepee MPVs, also gets a group two insurance rating.


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