The average cost of a comprehensive motor insurance policy has dropped slightly over the past three months. But the long-term pattern is still steep rises, with the extra cost paid by young drivers rocketing.
Research for the Confused.com/Towers Watson Car Insurance Price Index
showed that between July and September, average comprehensive costs dropped by 1.6%. However, across the past year, prices are up by £92 to £843, a 12.3% rise. Insurers insist they aren't making huge profits and that the price rises are driven by the growing costs of settling personal injury claims.
Counter-intuitively third-party, fire and theft policies average significantly more at £1,155. That's likely to be because many people taking out such policies are classed as high risk and would pay even more if they had comprehensive policies.
Male drivers aged 17-20 now pay an average £3,878 for insurance, compared to just £1,006 for men as a whole. The gap is narrower among women: 17-20s pay £2,063 compared to an overall average of £907.
Worrying a separate survey found that one in five young drivers has considered driving without insurance in response to the high costs.