A new report from a major insurance comparison website has predicted bad news for car insurance premiums over the next 12 months - with prices set to rise across the board.

Confused.com’s car insurance price index analyses price data from almost six million customer quotes every quarter and after spotting a spike in premiums at the end of 2019, they predict that the cost of insuring your car will be rising three times faster than the rate of inflation.

Prices rose by 5 per cent in 2019, with drivers now paying an average of £815 for their insurance, that’s £41 more than the same period last year.

Whilst the car insurance market is proving to be volatile, prices increasing and decreasing, the rises are more often than drops meaning that the average price is moving close to the 2011 high of £858.

Drivers in inner London saw the highest rise in 2019, an annual increase of 8 per cent. The West Midlands also saw significant rises joining Manchester and Liverpool as the only areas outside of London where the average premium costs more than £1,000.

There was bad news for female drivers aged between 26-30, that demographic saw the highest overall rise of 9 per cent.

“It’s January, the month to save money and re-evaluate our spending," said Confused.com's CEO, Louise O-Shea. "But the bad news is car insurance costs are increasing. And, as drivers, this is something we can’t avoid. If costs continue to accelerate at this pace, we could be paying record prices by the end of the year."

“Shopping around is key to saving on car insurance. And even if your renewal price is cheaper, or the same, it’s likely there will be another insurer out there willing to offer a better price."

Sell or part ex your car today