Drivers see car insurance costs rise by 20%

British drivers have seen their car insurance premiums go up by 20 per cent over the past 12 months, it has been revealed.

Despite Britons being increasingly well-placed to keep their costs down – largely as a result of price comparison sites, according to the market research firm Consumer Intelligence – this has not prevented them from being hit by a marked increase in the cost of cover.

Indeed, the firm’s latest data shows that both male and female drivers saw their motor insurance costs rise by an average of 20 per cent over the past year.

Hardest hit have been younger drivers, with the typical 17 to 24-year-old likely to have seen his insurance premium rise by 25 per cent to £1,489 over the past 12 months, though the over-55s continue to enjoy significantly lower rates, with the average premium for this group now costing just £376 a year.

Commenting on the figures, Consumer Intelligence managing director Ian Hughes said: “The advent of price comparison websites had actually kept a lid on car insurance premiums for some time, but these figures show the upward pressure on pricing has well and truly broken through.”

Earlier this month, it was revealed that drivers in the Yorkshire town of Halifax drove into more walls than in any other town in the UK over the past year.

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