Car insurance on track to become 'the most expensive' EVER as premiums soar by lb100 in 4 months

ROCKETING car insurance premiums are required to speed past all-time records in the coming months.

Annual prices are now just lb11 lacking the most expensive ever, recorded this year, and have shot up by lb100 in the last 4 months.

According to Confused.com's insurance price index drivers are paying an average of lb847 annually – a near 20 per cent increase from Twelve months ago.

And experts are predicting average prices could top lb1,000 by 2021.

Men are being hit hardest using the gender gap widening to lb120 annually – just lb1 shy of the gap prior to the EU introduced a directive to prevent the sex divide.

Rules prohibit insurers assessing risk according to gender but other factors like car choice and job mean men now pay lb901 a year in contrast to lb781 for ladies.

Regionally all areas are feeling the results with 11 regions – such as the East of England, South of England and West of England – all make payment on highest premiums they ever have.

And while younger drivers still pay the most for insurance, those aged between 25 and 42 years of age and 54 and 70 years old are paying record amounts.

Increases can be related to a raft of rule changes during the last few years.

Amendments towards the Ogden Rate – the calculation used for personal injury payouts – added lb3billion to insurers' cost which were passed onto motorists.

Personal injury payouts in the UK are also 17 times greater than in other EU countries.

Bogus whiplash claims driven by claims management companies and laws on who foots the balance for compensation mean insurers are experiencing to pay out millions in claims.

Insurance Premium Tax (IPT) has rocketed over the last two years, too, up from six percent to 12.5 per cent.

These alterations have have meant since 2021, insurance premiums have risen by a THIRD.

Amanda Stretton, motoring editor at Confused.com, said: “We cannot state that we're shocked by these figures, as following the Ogden Rate cut and hike in IPT, we knew drivers could be taking a hit.

"Worryingly, there's every possibility that auto insurance prices will be the priciest on record by the end of the entire year."