The average motor insurance premium has increased by 8% over the last year, adding an extra £34 to the annual cost of cover, according to the Association of British Insurers (ABI).
The average premium now stands at £462 – the highest level since the ABI started collecting the quarterly data in 2012.
The increase reflects cost pressures such as whiplash-related claims, increasing repair bills and hikes in insurance premium tax (IPT), the ABI said.
IPT is due to be increased further, from 10% to 12% on June 1, meaning “higher insurance bills for many look inevitable,” the ABI said.
Rob Cummings, the ABI’s assistant director, head of motor and liability, said whichever party is in government following the general election on June 8 should commit to measures to help lower the cost of car insurance.