 more expensive compared to a year ago. 1 The cost of car insurance premiums is soaring but you can save money with one tweak Credit: Getty The jump is the biggest yearly price increase on record, the price comparison site said. The average cost of a premium is now £776, with car insurance the third highest household bill in the UK after energy and council tax. Premiums also soared by £119 - 18% - in just the last three months, the price comparison website found. It comes as insurers battle increased costs and number of claims. Louise Thomas, motor expert at Confused.com, said car insurance had "quickly become one of the biggest expenses for drivers". But as premium prices soar, there's ways you can cut costs. Research from Compare the Market has found drivers under 24 could save on average £240 by adding a more experienced named driver to their policy. Meanwhile, motorists aged between 25 and 34 could save up to £250 by making the same change. Drivers between 16-24 could slash their premium from £1,783 to £1,543 with the small change. Meanwhile, motorists between 25 and 34 could see theirs go from £875 to £625. Why are prices increasing so much? Car insurance is rising at a time when inflation remains high and everyday essentials are costing more. The Consumer Price Index (CPI) level of inflation slowed to 7.9% in June, from 8.7% the month before. But that still means prices are rising at a faster rate than the Bank of England's (BoE) target of 2%. But why is car insurance specifically rising? It's mostly to do with costs that have been piled on insurers. First, Confused.com said, research suggests the number of drivers back on the roads has returned to pre-pandemic levels. This could mean insurers are havin){kind=link}
A QUICK and easy tweak to your car insurance policy can slash costs by £240 as premiums increase at a record-breaking rate.
New research from Confused.com has found the average price of a policy is now £222 (40%) more expensive compared to a year ago.
The jump is the biggest yearly price increase on record, the price comparison site said.
The average cost of a premium is now £776, with car insurance the third highest household bill in the UK after energy and council tax.
Premiums also soared by £119 – 18% – in just the last three months, the price comparison website found.