The cost of fully comprehensive car insurance has risen by as much as £56 for young drivers – marking an end to falling premiums for the first time in three years.
According to the latest Confused.com Car Insurance Price Index, the average quoted premium for an annual comprehensive car insurance policy now stands at £582, compared to £579 the previous quarter.
Although a marginal quarterly rise of 0.4%, this is the first time premiums have increased since June 2011.
Motorists aged 19 have been hardest hit with an average quarterly rise of £56 with 20-year-olds experiencing a similar increase of £4.
It is not just younger motorists being subjected to rising premiums – motorists aged 66 have also experienced the greatest price increase of any age group, seeing their premiums rise by 6.1% quarter-on-quarter.
While prices have crept up this quarter, overall comprehensive car insurance premiums are still down year-on-year. This time last year motorists were facing car insurance premiums of £652, whereas a year on) prices are 10.7% lower.
With the cost of car insurance falling consistently over the last three years, motorists across the board have been enjoying lower premiums.
However, predictions of unsustainable ongoing price decreases now appear to be coming into fruition, with motorists across a range of different demographics experiencing some upward movement in prices this quarter.
It is not bad news for all motorists this quarter, with some continuing to experience substantial decreases in their premiums. Those particularly benefiting this quarter are 17-year-old motorists, who have experienced the greatest quarterly decrease of any age group of -4.3%, seeing their premiums fall by £86 since Q2 2014.
This means that the average comprehensive premium for a 17-year-old currently stands at £1,911 – the lowest price recorded for this age group since the Index began, and £792 cheaper than this time last year.
Steve Sanders, Finance Director at Confused.com said: “The decreases in car insurance premiums that we’ve been experiencing for the last three years have been welcome news for motorists, however over recent months the heat has certainly come out of these price reductions.
“Our latest figures suggest that these price drops are now levelling out, with premiums actually rising over the last quarter to now stand at £582. Although this is just a marginal quarterly increase of £3, this is the first time premiums have increased since June 2011.”
He added: “Overall, it’s been a mixed bag over the last quarter, with price movements affecting consumers in different ways.
“These latest quarterly price movements are likely to fuel further speculation that the insurance pricing cycle may turn in the near future. With prices shifting around either way, as they have been over the last quarter, we’re urging consumers to shop around and compare prices.”