The cost of car insurance in inner London has rocketed more than 60% to a record average of £1,503 over the last year, new research reveals today.
Increasing frequency of claims and the higher cost of repairs for electric cars are among reasons why premiums are shooting up so fast.
The data, from the latest Confused.com car insurance price index, is based on analysis from more than six million quotes. The rise is the fastest since the index was launched in 2006. Premiums are up 19% in the last quarter alone.
In Outer London, prices are now £1,187, on average, following a £446, or 60%, annual increase.
Young drivers are worst hit with those under 21 seeing average cost over £2000. Premiums for 17 year olds have doubled to an average of £2613.
The average price for men is now £987, following an annual increase of £359, or 57%. For women drivers, premiums have increased by £304, or 59%, to an average of £820.
Louise Thomas, motor expert at Confused.com car insurance said: “For another consecutive quarter, we’ve seen some of the highest inflation rates when it comes to car insurance. With prices up nationally on average £148 (19%) in just 3 months, and £338 (58%) in 12 months, drivers are likely to be paying more than ever. So those who haven’t yet been affected should be wary of how pricing may affect them at their next renewal.
“But there are deals around and drivers can still save money, even if they’ve noticed their renewal has gone up. And in a time of financial uncertainty, this can be really helpful if you’re needing to watch your money more closely than before. So if you’re due to renew, consider ways in which you can keep costs down.
“Whether it’s reducing your mileage or improving your car security, these can certainly help. But remember to always be truthful to your insurer, otherwise you risk invalidating your policy.”
