Why has my car insurance increased so much this year?

To insure our Fiat 500C last year was £209 but this year the lowest quote anywhere is £354. That's with no changes or claims. Please can you explain this 70% increase?

Asked on 4 July 2023 by terence smith

Answered by David Ross
You're not alone - nearly all motorists are seeing significant increases to their insurance renewel. According to the Association of British Insurers (ABI) premiums continue to rise due to several factors. Insurers have reported increasing costs, including energy inflation impacting repair expenses, a nearly 16% rise in average paint and material costs and a 30% increase in courtesy car costs for repairers. Sadly that cost is passed onto us - the motorist.

The average price of a renewel for 2023 has gone up by £70 with the average price of car insurance now at £478 in the first quarter of 2023. So even if you haven't claimed and your NCB has increased, your insurance will still go up. We'd suggest keep looking on comparison sites for the best deal, but it's likely to still be considerably more than you paid last year.
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