While Ontarian motorists are used to paying excessively high auto insurance rates, they have at least been enjoying premiums slowly falling. However, in the United Kingdom, drivers are facing the prospect of paying 19% more for their coverage than they were last year.
Comparison site, Confused.com, highlights the fact that this is the steepest rise since the 25% increase through the second quarter of 2011. The new five-year high means the average motorist in the UK is now paying £715, compared to £600 just a year ago. Because many will be paying more for their coverage, Confused speculates that the hike could leave to drivers quitting the roads.
“Insurance price increases of this magnitude, coupled with rising petrol prices and hikes in insurance premium tax, could well signal the end of the road for cheaper driving for motorists,” the press release said.
Ironically, young drivers have been the least impacted by the rising premiums. The 17-24 age group consistently pays the highest auto insurance rates, but the youngest (17-year olds) have been the least affected by rising premiums. Their 8% increase is well below the national average, even if they have not been untouched. Young drivers of this age still pay on average over £2000 ($3455 CAD).
At the other end of the age spectrum, Confused points out that older drivers have been hit hardest. Those over 61 have seen their annual premium increase by 24%. However, this market typically pays less to begin with, so the average comprehensive coverage for those over 61-years old now sits at £418.
So, how does the average UK price of £715 compare to the average price in Ontario, Canada’s most expensive car insurance market? Well, in the United Kingdom the average price is still well below that of Ontarians. £715 is about $1235 CAD, whereas the average premium in Ontario is over $1500.
Even after a near 20% average increase, the UK remains cheaper for car insurance.