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Motorists facing significant increases in insurance costs

By Tom Gibson | July 25, 2023

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Inflation that never ends for motorists as now it’s insurance costs that are on the rise

Motorists facing significant increases in insurance costs

In the seemingly never ending world of financial bad news, motorists across the UK are now braced for further increases in car insurance costs when it comes to renewal time.

The Guardian has tracked down a Dacia Jogger owner who saw his insurance premium increase by nearly 90%, despite having a clean driving record and no claims.

Data from the Office for National Statistics revealed that car insurance prices had surged by 50.9% over the last year and the rising cost of car insurance means it now ranks as a household’s largest expense after council tax and energy bills.

The situation is particularly concerning for owners of budget-friendly cars who would previously benefit from lower premiums, but they now seem to be much harder to come by with drivers sharing stories on social media expressing their frustration with the sudden and substantial premium hikes.

Is this yet another bit of profiteering at our continued expense?

Various insurance providers, including Admiral, Direct Line, and Saga, have reported significant increases in renewal quotes for 2023. The average car insurance quote has risen by 34% in the year to May, with under-25s experiencing the highest costs at an average of £2,145.

The Association of British Insurers reported that motor insurers paid out £2.4 billion in motor claims in the first three months of the year, with repair costs and personal injury claims being major factors behind the increase.

While some customers have managed to find cheaper alternatives, the increased number of policy options has led to confusion among consumers. Additionally, the Financial Conduct Authority's ban on "price walking," the practice of charging higher premiums to loyal customers, has also contributed to the overall price rise.

To cope with the escalating costs, drivers may need to make compromises, such as accepting higher excess amounts or opting for reduced coverage and it will always be essential to shop around to find the right policy for you.

Use your Regit Digital Garage to remind you when your insurance is due. Enter now

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