The average fully comprehensive car insurance premium in the UK now stands at almost £1,000, according to research published today.

Analysis from price comparison site Confused.com found the average premium is now £995, up from £629 a year ago. The site says the 58-per-cent price increase is primarily down to inflation, which is affecting the cost of replacement vehicles and repairs.

According to the organisation, increasing traffic volumes have upped the risk of collision, while the rising costs of used cars has made vehicles more valuable and made replacing a vehicle more expensive.

Inflation has also impacted the cost of vehicle components and the cost of labour required to carry out repairs, while the increasing prevalence of technology in cars has also made damage more expensive to repair.

“Like a lot of our expenses, car insurance is getting more costly and this is likely to be the case for some time,” said Louise Thomas, motor insurance expert at Confused.com.

“Claiming is one of the biggest factors when it comes to insurers pricing up policies. And with the cost of paying out for claims being considerably high, insurance prices are going to be, too.”
Most renewals are more expensive

As a result, three-quarters (75 per cent) of UK drivers who received their renewal in the last three months saw their premium rise, with the average increase standing at £98. However, more than a third of those customers switched their insurance policy to a new provider, saving an average of £96 over their renewal quote.

Just seven per cent of customers received a cheaper renewal quote from their existing provider.

Perhaps unsurprisingly, younger drivers were hit hardest by the increase, with those aged between 17 and 20 seeing their insurance premium rise by more than £1,000 on average over the past 12 months.

For 17-year-olds, that means premiums have more or less doubled to an average of £2,877, while an 84-per-cent increase in premiums for 18-year-olds means they now pay £3,162 a year on average. It’s the first time premiums for 18-year-olds have ever passed the £3,000 mark.
Postcode car insurance lottery

But Confused.com says youngsters aren’t the only drivers suffering. The average annual premium for drivers up to the age of 43 has now surpassed £1,000, although the figures suggest how much you pay is something of a postcode lottery. Average annual premiums in central Scotland, for example, remain below £900, while those in central London pay an average of £1,607.

In Northern Ireland, meanwhile, average premiums rose to £1,051 — an increase of 57 per cent that sees the country’s average premium top £1,000 for the first time on record.

Confused.com has also warned motorists that prices could continue to rise, albeit more slowly, for the foreseeable future.

“While it looks like increases could be slowing down for now, we still need to be doing what we can to keep these costs as low as possible,” said Thomas.

“Things like increasing security, reviewing how many miles you drive or adjusting your excess could bring your overall cost down. But it’s important to remember that the information you’re providing should be accurate otherwise you risk invalidating your policy if you need to make a claim.

“Ultimately, shopping around is the only way to know you’re paying the cheapest price available to you. With prices so high, it’s a very competitive market. So if you look around, there’s likely to be an insurer out there willing to offer a cheaper price.”

On 20/01/2024 08:13 pm, Simon Mason wrote:
>
> The average fully comprehensive car insurance premium in the UK now stands at almost £1,000, according to research published today.
>
> Analysis from price comparison site Confused.com found the average premium is now £995, up from £629 a year ago. The site says the 58-per-cent price increase is primarily down to inflation, which is affecting the cost of replacement vehicles and repairs.
>
> According to the organisation, increasing traffic volumes have upped the risk of collision, while the rising costs of used cars has made vehicles more valuable and made replacing a vehicle more expensive.
>
> Inflation has also impacted the cost of vehicle components and the cost of labour required to carry out repairs, while the increasing prevalence of technology in cars has also made damage more expensive to repair.
>
> “Like a lot of our expenses, car insurance is getting more costly and this is likely to be the case for some time,” said Louise Thomas, motor insurance expert at Confused.com.
>
> “Claiming is one of the biggest factors when it comes to insurers pricing up policies. And with the cost of paying out for claims being considerably high, insurance prices are going to be, too.”
> Most renewals are more expensive
>
> As a result, three-quarters (75 per cent) of UK drivers who received their renewal in the last three months saw their premium rise, with the average increase standing at £98. However, more than a third of those customers switched their insurance policy to a new provider, saving an average of £96 over their renewal quote.
>
> Just seven per cent of customers received a cheaper renewal quote from their existing provider.
>
> Perhaps unsurprisingly, younger drivers were hit hardest by the increase, with those aged between 17 and 20 seeing their insurance premium rise by more than £1,000 on average over the past 12 months.
>
> For 17-year-olds, that means premiums have more or less doubled to an average of £2,877, while an 84-per-cent increase in premiums for 18-year-olds means they now pay £3,162 a year on average. It’s the first time premiums for 18-year-olds have ever passed the £3,000 mark.
> Postcode car insurance lottery
>
> But Confused.com says youngsters aren’t the only drivers suffering. The average annual premium for drivers up to the age of 43 has now surpassed £1,000, although the figures suggest how much you pay is something of a postcode lottery. Average annual premiums in central Scotland, for example, remain below £900, while those in central London pay an average of £1,607.
>
> In Northern Ireland, meanwhile, average premiums rose to £1,051 — an increase of 57 per cent that sees the country’s average premium top £1,000 for the first time on record.
>
> Confused.com has also warned motorists that prices could continue to rise, albeit more slowly, for the foreseeable future.
>
> “While it looks like increases could be slowing down for now, we still need to be doing what we can to keep these costs as low as possible,” said Thomas.
>
> “Things like increasing security, reviewing how many miles you drive or adjusting your excess could bring your overall cost down. But it’s important to remember that the information you’re providing should be accurate otherwise you risk invalidating your policy if you need to make a claim.
>
> “Ultimately, shopping around is the only way to know you’re paying the cheapest price available to you. With prices so high, it’s a very competitive market. So if you look around, there’s likely to be an insurer out there willing to offer a cheaper price.”

Only 33 days of May Sun's trolling to go.

After that, only posts about chav-cyclists...
>

JNugent <jnugent@mail.com> wrote:
> On 20/01/2024 08:13 pm, Simon Mason wrote:

>> “Ultimately, shopping around is the only way to know you’re paying the
>> cheapest price available to you. With prices so high, it’s a very
>> competitive market. So if you look around, there’s likely to be an
>> insurer out there willing to offer a cheaper price.”

> Only 33 days of May Sun's trolling to go.

> After that, only posts about chav-cyclists...

:-)))

--
Spike

UK car insurance premiums surge 58% to almost £1,000 on average © Reuters. UK car insurance premiums surge 58% to almost £1,000 on average

Proactive Investors - UK car insurance premiums surged 58% to a record high of just under £1,000 last year, blamed on the soaring costs of claims and car part prices.

Research by WTW and Confused showed motorists in the country pay on average £995, up by £366 during the past 12 months.

The Confused Car Insurance Price Index found an average price rise of 8% (£71) in the last quarter of 2023, which suggests a slowdown in rises as premiums leapt by 19% in the third quarter and 18% in the second, when the year-on-year increase was also 58%.

In 2022, car insurance premiums increased 19%, according to the index.

The highest premiums and the biggest increases were quoted for recently qualified 17-year-olds, around £2,877 on average, the data showed, a 98% year-on-year increase for a group viewed as the highest risk.

On 21/01/2024 05:36 am, Simon Mason wrote:
>
> UK car insurance premiums surge 58% to almost £1,000 on average © Reuters. UK car insurance premiums surge 58% to almost £1,000 on average
>
> Proactive Investors - UK car insurance premiums surged 58% to a record high of just under £1,000 last year, blamed on the soaring costs of claims and car part prices.
>
> Research by WTW and Confused showed motorists in the country pay on average £995, up by £366 during the past 12 months.
>
> The Confused Car Insurance Price Index found an average price rise of 8% (£71) in the last quarter of 2023, which suggests a slowdown in rises as premiums leapt by 19% in the third quarter and 18% in the second, when the year-on-year increase was also 58%.
>
> In 2022, car insurance premiums increased 19%, according to the index.
>
> The highest premiums and the biggest increases were quoted for recently qualified 17-year-olds, around £2,877 on average, the data showed, a 98% year-on-year increase for a group viewed as the highest risk.

How much has compulsory chav-cycle insurance increased by?

Now THAT'd be on-topic!

But if there is one cost that is causing alarm to drivers generally and would-be drivers of EVs in particular, it is soaring insurance premiums.
Why are car insurance premiums going up so steeply?

Repair bills are rising because of shortage of parts and associated price increases, alongside higher garage running costs such as energy bills and wages.
Supply chain disruption means repairs are taking longer, which means drivers are keeping courtesy cars for longer.
Sophisticated engines and control systems are more expensive to repair, both in terms of parts and labour.
Electric cars – which now account for more than one million vehicles on UK roads – cost more to repair because of availability and expense of parts and shortage of skilled mechanics.

It is also the case that EVs may more readily be written-off by insurers, even after a relatively minor incident. This is either because the cost of replacing a damaged battery is prohibitively expensive, or they are unable to determine whether the battery pack is damaged..

In such cases, the driver will receive the adjudged value of the car, which is likely to fall far short of the cost of buying a like-for-like replacement.

The price of electric car insurance has risen at an even more alarming rate than for traditional internal combustion engine cars, signalling that insurers do not want this business on their books.

One firm – Covea, which underwrites policies on behalf of John Lewis Group, among others – pulled out of insuring electric vehicles altogether in 2023, even refusing to renew existing policies.

Andy Moody, boss of short-term car insurance provider GoShorty, says: “With the shift to EVs, vehicle insurers will need to consider a huge variety of factors, such as the total value of the vehicle, details of the driver, plus other aspects such as the potential cost of repairs for the vehicle. These will all impact insurance premiums.

“Insurers will need to find the right balance between a fair price for comprehensive cover and not disincentivising consumers to choose an EV.”