Motor premiums to rise 15%

Researcher Consumer Intelligence says motor insurers will raise premiums 15% this year, after 20% rises last year,the Mail reports.

The rise comes after a year in which average premiums have already surged Insurers blamed personal injury claims fuelled by no-win no-fee lawyer adverts on television.

Survey results

• The average annual premium is £564.19, almost 20% higher than in January 2009.
• About 1.6 million drive without insurance, which leads to an increase of £30 per policy for drivers who do pay.
• Premiums rose for 17 to 24-year-olds by almost a quarter, to £1,489.
• For drivers aged 65 and over the rise was just 15% to an average of £423.
• 55- to 64-year-olds pay the least at just under £376.
• Premiums for men increased (20.1%) more than for women (19.1%).

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.”