Vehicle insurance prices at two-year high

Car insurance prices have hit a 2-year high, according to MoneySuperMarket data.

Average premiums are now at their highest levels since December 2012, following 3 months of steep increases.

It makes average prices 10% more expensive than they were this time last year and £25 more expensive than in October.

Though the graph below shows a steady decline overall since March 2011, the price inflation in the last 3 months could signal higher prices next year.

Kevin Pratt, our insurance expert, said: “Motorists have benefited from competitive pricing in the insurance market recently, but it looks like low costs are a thing of the past, as motoring cover has been steadily creeping up since August this year.

“Premiums in November averaged out at £456, the highest we’ve seen since December 2012 when premiums were at £465. Premiums are 10% higher compared to this time last year, and are increasing rapidly – November saw an uplift of £25 from October.

“Although average premium prices aren’t at the record levels we saw in the first quarter of 2011, it is worrying that we have seen car insurance premium inflation running at a higher level that we saw then. However, according to our data, premium prices do rise towards the end of the year but if this inflation continues, we could see average premiums break the £500 mark in 2015.”

As car insurance prices continue to rise, it’s more important than ever to shop around for your cover, and ensure you’re getting the best policy for your money.

Many drivers are being stung on renewal costs, which are often more expensive than alternatives on the market, so it really does pay to shop around for cover to find the best value cover for you. The average saving made by drivers using MoneySuperMarket is £237.

Vehicle insurance prices at two-year high