Car insurance premiums rose nearly 40% in 2010 with the averagecost now £695, and the prices are still rising.
With this staggering 40% increase, car insurance premiums rose more than triple those of 2009, meaning drivers are now paying nearly £200 more than they were this time last year.
Considered the cheaper option, third party, fire and theft (TPFT) cover tose by over 56%, taking away the last refuge for young drivers looking for a way to cut their insurance costs.
The last quarter of 2010 saw the 51-55 year old driver bracket saw the biggest rise. This can be attributed to parents adding children to their policies as names drivers with a key issue being insurers becoming wiser to the issue of fronting.
Will Thomas, head of motoring at Confused.com says “Whilst costs are undeniably still rising, there is evidence that the rises are starting to lose momentum.”
He added “The only way for households to tackle spiralling costs is to make sure they are getting the best value, best fit policy. The easiest way to do this is to shop around.”
Confused.com is one of the UK’s biggest and most popular price comparison services. Launched in 2002, it generates over two million quotes per month.
It has expanded its range of comparison products over the last couple of years to include home insurance, travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance.