Britons driven off the road as car insurance surges by 46% | Personal Finance | Finance

The cost of car insurance has surged by 46 percent in a year adding £292 to the average annual cost.

The punishing increase has taken the average figure up to £892, according to figures from Compare the Market.

And the situation is even worse for young new drivers who could now be charged more than £2,000.

Insurers insist the rise is driven by increases in the cost of spare parts, energy and hiring specialist mechanics.

Young drivers, aged under 25, have seen the largest annual increase in the cost of car insurance.

There has been a month-on-month decline in the cost of car insurance since November 2023 when the price peaked at £951.

The typical premium for motorists in this age group has risen by £648 year-on-year to £2,057 in February, making getting behind the wheel unaffordable for many.

Motorists looking to cut down on costs due to these rises may have to consider shopping around for a cheaper deal when their policy comes up for renewal.

Julie Daniels, motor insurance expert at Compare the Market, said: “The rising cost of car insurance is understandably causing concern for many motorists. Our research shows motor premiums have jumped by more than £250 year-on-year.

“For those concerned about the cost of driving, shopping around ahead of renewal is one of the best ways to save money on car insurance.

“We want to encourage motorists who tend more to stick with their existing insurer each year to compare prices to find the right deal for them.”