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Insuring the car will cost £900 a year

The cost of high-tech repairs, pressures in the insurance industry and Brexit are being blamed for the rise
The cost of high-tech repairs, pressures in the insurance industry and Brexit are being blamed for the rise
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Car insurance will hit a record high of more than £900 this year because of a combination of Brexit, tax increases and the growing cost of repairing high-tech cars.

A study published today found that premiums were on course to eclipse the previous high of £858 set in 2011 after a 23 per cent rise over the past two years.

The research also found that men were being charged an average of £114, or 15 per cent, more than women despite European rules banning the use of gender as a risk factor.

Drivers were paying an average of £827 by the end of 2017, the study by Confused.com found. Researchers estimated that prices would hit at least £900 on average by the end of this year.

In some parts of the country, prices have already reached four figures, with drivers in inner London paying an average of £1,283 at the end of last year and those in Bradford facing bills of £1,233.

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The rises have been blamed on pressures in the insurance industry. The rate of insurance premium tax has doubled from 6 to 12 per cent in two years, with speculation of a further increase this year.

The complexity of technology in many modern cars has also driven up the cost of repairs, with the extra expense being passed on to motorists.

A series of insurance reforms will be outlined by the government this year in its new civil liability bill. However, insurance bosses believe that the legislation could be delayed by Brexit.