The price of car insurance has soared by 43 percent over the last 12 months, new research has found.

The average cost of car insurance is now £941, after increasing by £284 (43 percent) in the past 12 months according to the latest car insurance price index from Confused.com.

While prices are higher for those shopping around annually for their car insurance, the data shows that the cost of car insurance dipped slightly at the beginning of the year. 

Prices fell by £54 (-5 percent) between January and March this year, offering some drivers some respite from significant increases.

But even though prices have dropped compared to the end of last year, drivers are still paying more now than they were at their last point of renewal.

Difference in prices over 5 years

Further research by Confused.com found that more than two in five (43 percent) UK drivers claim they are paying more for their insurance now than ever before. Only one in seven (15 percent) claim they are happy with the amount they pay for their car insurance.

Despite their loyalty, renewing customers are also seeing their prices increase significantly. But some were able to save money by shopping around. 

According to the research, of those who received their renewal between January and March this year, three in four (75 percent) received a more expensive price compared to the previous year. 

According to the research, these drivers saw their renewal price increase by £94, on average. After receiving their price, almost half (45 percent) went on to shop around and switch insurers, saving £90 compared to last year’s price, on average.

Louise Thomas, motoring expert at Confused.com car insurance said: “For the first time in a while car insurance prices have stalled slightly for most drivers, and this may come as a relief. However, prices are still incredibly high and so people can expect to see their price increase compared to the previous year.

“The important thing to remember is that you don’t have to accept your renewal, especially as we know from our research that shopping around can find you a cheaper price. And on top of this, there are additional ways you can save as well. Choosing a higher voluntary excess can bring down your overall premium – but remember to only choose a price you can afford should you need to make a claim. 

“And if you can, paying annually will save you money too, as monthly payments can incur an interest charge. If these aren’t viable options, things like increasing your security or reviewing your mileage to be more accurate could make a difference when quoting.”