Average cost of car insurance rockets to almost £1000
Fri, 20 Oct 2023
The average cost of car insurance in the UK has risen to a record £924 in the past three months, according to new figures from Confused.com.
We've had scores of readers contact us to complain about sky rocketing insurance renewals. Indeed, compared to the same period in 2022, the average price of insurance has increased by an eye watering £338.
And with prices up by an average of £148 since June this year - an increase of almost 20% - there's little sign of respite for hard pressed motorists.
The rise is the highest annual recorded increase since the Confused.com car insurance price index, which is based on more than 6 million quotes, began in 2006.
Despite the FCA introducing the General Insurance Pricing Practices in January 2022, in order to ensure fairer pricing, insurance prices appear to be spiralling skyward.
Along with rising inflation rates which have driven up the cost of repairs and maintenance, Confused.com says the rise in sales of electric cars is a factor in the price increase.
With higher prices than their petrol or diesel equivalents, along with more advanced technology and equipment, EVs are more expensive to repair or replace. Electric cars also generally have quicker acceleration than other vehicles, so could appear riskier to insurers.
The strong used vehicle market is another variable according to Confused.com. With second-hand vehicles keeping their value for longer, if a driver has an accident and their vehicle is a write off, this now costs insurers more to pay out.
"For another consecutive quarter, we’ve seen some of the highest inflation rates when it comes to car insurance. So those who haven’t yet been affected should be wary of how pricing may affect them at their next renewal," says Louise Thomas, motor expert at Confused.com car insurance.
Thomas points out that there are deals around and drivers can still save money, even if they’ve noticed their renewal has gone up.
"In a time of financial uncertainty, this can be really helpful if you’re needing to watch your money more closely than before. So if you’re due to renew, consider ways in which you can keep costs down. Whether it’s reducing your mileage or improving your car security, these can certainly help. But remember to always be truthful to your insurer, otherwise you risk invalidating your policy," she adds
