Car insurance prices to rise by 15%

Car insurance prices are set to rise by another 15% this year, fuelled by personal injury claims and uninsured drivers, according to latest research.

The predicted 15% rise come after a 20% rise in car insurance costs last year.

TV ads with lawyers encouraging ‘no-win no-fee’ personal injury claims are a key contributor to these rising costs. So too though are the costs of the uninsured drivers, many of who are deciding not to take out car insurance to save money.

It’s estimated there are around 1.6 million uninsured drivers and these lead to an extra £30 per car insurance policy for those who do pay.

Ian Hughes, managing director of Consumer Intelligence  who undertook the research, said: ‘The advent of price comparison websites had actually kept a lid on car insurance premiums for some time.

‘But these figures show the upward pressure on pricing has well and truly broken through.”

Comparison sites, such as Confused.com, Gocompare.com, Comparethemarket.com and moneysupermarket.com, can really help to save money on car insurance.

Interestingly enough, the research found that the premiums rose more for male drivers than for female drivers. The biggest increase was seen for those between 17 and 24, with prices up by almost a quarter.

The average annual premium is now £564.19, another 15% rise would take this to £648.82 by January next year.