Comprehensive car insurance premiums grew by an average of £35 in the last quarter of 2016, pushing current rates up to the highest levels seen since 2013.
According to the AA’s British Insurance Premium Index, motorists were charged an average of £633.06 for a year of comprehensive coverage in December, which is 5.8% more than they would have been charged three months earlier.
2016 as a whole saw comprehensive premiums grow by 11.7%, continuing a trend that has been in place since 2014. Third party, fire and theft premiums, which are mostly taken out by younger drivers, grew at an even fast rate, with premiums up by 19.4% compared with 2015.
Michael Lloyd, the AA’s director of insurance, cites uninsured drivers as a key reason for the increase. “I also believe the increases in Insurance Premium Tax – which will rise another 2% in June - and fraud continue to dog the industry,” he added.