Inflation drives record rise in car insurance premiums – with Londoners worst hit
Soaring inflation has led to a record 20 per cent jump in UK car insurance premiums – the sharpest rise in a decade.
Drivers are now paying on average £107 more for their car insurance than they were this time last year, according to the latest results from Confused.com’s Car Insurance Price Index.
London motorists saw the largest rise in their insurance premiums, up 23 per cent, with those in inner and outer London paying on average £1067 and £845 respectively.
Young drivers took the biggest hit of any demographic, with male and female drivers aged 17-20 seeing a 29 per cent and 30 per cent annual rise respectively. Their average premiums now reach £1930 and £1360.
Tim Rourke, UK Head of P&C Pricing, Product, Claims and Underwriting at insurance firm WTW, said that “fast-paced inflation throughout the UK economy” has “driven up the costs insurers face in fulfilling claims,” with parts and labour costs all rising significantly over the last year.