Motor insurance coverage premiums rise 17.4% up to now 12 months

The typical price of probably the most aggressive motor insurance coverage offers has elevated 17.4% up to now 12 months including to the cost-of-living strain within the UK, the most recent motor insurance coverage worth index printed by Client Intelligence exhibits¹. 

Worth rises in automobile insurance coverage are outstripping inflation for the financial system as a complete at 10.7% with common premiums now costing £877.  

“The surge has been anticipated this 12 months following the ban on worth strolling. We’ve not discovered it shocking that costs have elevated because of this,” says Senior Perception Analyst Georgia Day. 

“What’s shocking nevertheless is the variety of product launches we’re seeing, particularly the rising variety of necessities merchandise. To focus on this, the variety of complete manufacturers quoting throughout the PCW market reached its highest level since our monitoring started in 2014,” she provides. 

Premium rises for the over-50s are operating at 21% – greater than double the speed for the under-25s at 9.1% with motorists in Wales dealing with the most important will increase at 24.5%. 

Costs have elevated simply 0.1% for the under-25s up to now three months which noticed premiums for the market as a complete rise 3.4%. 

Telematics quotes are enjoying a extra outstanding function in probably the most aggressive offers – the info exhibits they make up 32% of the most effective offers which is the very best degree since Client Intelligence first began monitoring it in 2014. 

Lengthy-term view  

Common general premiums have elevated 32.3% since October 2013 when Client Intelligence first began gathering information. 

Nonetheless, premiums are down 24.7% over the interval for the under-25s whereas they’ve elevated 67.7% for the over-50s and 44.2% for these aged between 25 and 50. 

Age variations up to now 12 months 

Older drivers proceed to bear the brunt of worth rises with premiums up 21% up to now 12 months, however they pay the bottom premiums of all age teams at £449.  

Motorists aged 25-50 aren’t far behind when it comes to worth rises over the identical 12-month interval at 19.1% however the annual price of their automobile insurance coverage is increased at £645. 

The under-25s – who’re statistically extra more likely to have an accident – have solely seen costs improve 9.1% up to now 12 months however pay £1,813 for automobile insurance coverage. 

Telematics  

The variety of telematics merchandise that make up the 5 most cost-effective insurance coverage quotes for a typical motorist has elevated to a brand new excessive of 32% beating the earlier report of 30% in January 2022. 

Telematics insurance policies base your premiums on the way you drive, with insurance coverage turning into cheaper for safer drivers.  

The under-25s are most probably to profit – 67% of the 5 most cost-effective insurance coverage quotes for them are telematics in contrast with 24% for the 25 to 50 age group and simply 13% for the over-50s. 

Regional variations 

Welsh drivers have seen the most important will increase to their automobile insurance coverage within the final 12 months at 24.5%, however all areas have seen double-digit will increase except for the North East which was simply wanting double digits at 9.9% 

Londoners pay probably the most for motor insurance coverage at £1,346 adopted by the North West at £1,256. The most affordable area for motor insurance coverage is the East Midlands at £463.