The cost of an average car insurance policy has grown by £177 since last year, with 17-20 year old drivers seeing a whopping increase of as much as £616.
The latest car insurance price index (CIPI) information published from EMB reveals that the average car insurance premium in the UK is £650, which is a 37.5% price rise when compared to October 2009.
The report also reveals that young drivers are bearing the brunt of these rising premiums. The 17 to 20 age group has seen the largest quarterly increase for comprehensive policies, with premiums rising by 10.9% or £283.
Consumers trying to save money on their motor insurance by taking out third party, fire and theft (TPFT) policies have also been left disappointed. Motorists who have opted for third party, fire and theft cover have faced above average quarterly increases some 11.7% and a huge rise of 54.2% since last October.
In order to guard against parents “fronting” for their children in the face of these massive premium rises, “Insurance plus one” policies have suffered price increases of 65.6% for men and 60.3% for women aged 46-50 over the last 12 months.
Commenting on the findings, Peter Lee, a partner at EMB, said: “The scale of bodily injury claims inflation revealed in a recent study of 85pc of the private motor market has emphasised the need for price rises.”