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Car insurance prices are on track to surpass the most expensive rates yet, according to price comparison website confused.com.
Average premiums now stand at £847, according to the firm's Q2 car insurance price index, just £11 short of the most expensive premium on record, recorded six years ago.
Confused.com said car insurance premiums have risen by 8% (£66) over the last quarter, the largest quarterly rise since Q3 2010.T he hike is being put down to the Ogden rate cut - which sees insurance companies paying out more for personal injury claims ? and an increase in Insurance Premium Tax in June.
These rises have also caused car insurance prices to increase by 18% (£132) compared with this time last year, which confused.com claimed is the largest monetary increase in six years, with the firm speculating that premiums could surpass the £1,000 mark by 2018.
Confused.com added that the difference between what men and women pay stands at £120, just £1 short of the gap before an EU directive came into force in 2011 preventing insurance companies from assessing drivers based on their gender.
The price comparison website put the difference down to the fact that men tend to drive more expensive cars, and so make higher-value claims.
"Car insurance prices are at tipping point and very soon we expect it will be the norm for drivers to be paying the highest prices ever for their premiums," said Amanda Stretton, motoring editor at confused.com. "We cannot say that we're shocked by these figures, as following the Ogden rate cut and hike in IPT to 12%, we knew drivers would be taking a hit. Worryingly, there is every possibility that car insurance prices will be the most expensive on record by the end of the year."
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