ICAEW.com works better with JavaScript enabled.

This is exclusive content

Car insurance premiums rising dramatically

Car insurance bills are skyrocketing five times faster than inflation, according to new research.

Data obtained by insurance and finance market research agency Consumer Intelligence shows that the average premium rose by 14.6 per cent in the past year – five times the current inflation rate of 2.9 per cent

The government's recent proposals to increase the Ogden rate – which sets pay-outs for large personal injury claims – has helped stabilise premiums, but rising claim costs mean that the amount people pay for insurance is still on the rise