The average price quoted for car insurance rose by 67.2% in the year to November, the highest annual increase on record, according to the Consumer Intelligence Car Insurance Price Index.
Quoted premiums are now at their highest levels since Consumer Intelligence’s records began.
This was an even bigger increase than the annual jumps registered in the 12 months to May and August, when quoted insurance prices leaped 34% and 61% respectively.
Market research firm Consumer Intelligence said average quoted premiums have more than doubled, rising by a whopping 124.4%, since October 2013 when the firm first started collecting data.
It added that there are some signs of a slowdown in the price increases.
Quoted premiums rose by 10.6% in the three months to November, when most drivers were quoted between £500 and £749 for insurance scheme on average.
This was less than the 22% rise in the three months to August and the 15.2% increase in the three months to May.
Record payouts for claims totalling £2.54 billion in the third quarter of 2023 exacerbated the price increases, according to the research firm.
It said telematics providers are also becoming more competitive and now account for 18% of the top five quotes on the market, compared with 17% in the year to August, but still less than the 24% in the three months to February 2023.
“Record payouts for claims are having an impact on quoted premiums and there is evidence that in certain areas such as Scotland and the East Midlands recent storms have had an impact on premiums,” said Max Thompson, Insurance Insight Manager at Consumer Intelligence.
“During the last quarter small increases in telematics competitiveness were observed across all the age groups of one to two per cent. However, motorists across all age groups and all over the country are seeing major increases in quoted premiums.”