• Average car insurance policy has risen by almost £100, or 14%, in the past year and by £200 over the past two years
Simon McCulloch

Simon McCulloch



“This is somewhat of a watershed moment for car insurance. The cost of an average policy has risen by around a third in two years, demonstrating just how difficult it is for people to get on the road.

“No one factor has driven premiums up this much, but some measures taken over the past years have put serious pressure on policies. One of the most prominent causes of these rises is the doubling of insurance premium tax over the past two years. Equally, the recent decision by the Ministry of Justice to change how compensation is calculated, has also added substantial amounts to the average person’s policy.

“Low interest rates and the cyclical nature of car insurance, have also played a part in rising premiums, but the hyperinflation caused by these governmental changes has disproportionately pushed up the cost of driving.”

Timeline of car insurance premiums

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