Auto cover premiums a rapidly rising cost for UK consumers
The average annual premium for UK car insurance increased almost £100 from January to November 2016 and is now 12% more expensive than four months ago, according to researchers MoneySupermarket. The calculation was based on data from 873,000 quotes given on the website throughout November. Kevin Pratt from Moneysupermarket noted that outlook is bleak for consumers given petrol prices are rising and the autumn statement's 20% increase in insurance premium tax will mean a hike of up to 12% on car and home insurance premiums from next June.

C ar insurance has soared by an average of £100 in the past year alone, new figures reveal.

It is now 12 per cent more expensive to insure a vehicle than it was just four months ago, according to the study by Moneysupermarket.

An analysis of 873,000 insurance quotes run on the website during November found that the average annual premium is £597. This is almost £100 more than the average at the start of 2016.

Kevin Pratt, consumer affairs expert at Moneysupermarket, said: “Motorists won't be feeling much Christmas cheer when they read the news that car insurers are bumping up premiums by almost 12 per cent a year.

“Alongside reports that petrol prices are heading back towards £1.20 a litre, it's a punishing time for the nation's wallets and purses.

“The government has committed to introducing reforms to tackle whiplash fraud, but we've heard this story before and need to see concrete action that brings down premium inflation as a matter of urgency.

“This is especially the case given that the Chancellor, in last month's autumn statement, announced a 20 per cent increase in insurance premium tax from next June, up to 12 per cent on all car and home insurance premiums.”