Car insurance costs getting harder to manage
A new report has highlighted how drivers are struggling to afford motor insurance in the face of the cost-of-living crisis.
According to Forbes Advisor, four in five (83%) British adults have taken out car insurance in the last 12 months, with more than half (55%) saying it is excessively expensive. This sentiment was even more pronounced among younger drivers, with more than two out of three individuals aged 18 to 34 (67%) sharing the same view.
Despite the cost implications, 90% of drivers have comprehensive policies, the most expensive cover available.
However, the survey revealed that almost half (47%) of drivers switched insurance providers in the past year, with the most common reason for doing so being to save money (38%). A fifth of respondents (21%) opted for cheaper providers, while others turned to paying through monthly instalments to avoid a hefty lump sum payment (17%).
Drivers are also saving money by reducing cover benefits, with eight per cent opting out of breakdown cover and the same number choosing to increase their voluntary excess.
Kevin Pratt, car insurance spokesperson at Forbes Advisor, said: “Car insurance is a necessity for many individuals and families, and the escalating costs are placing an increasing strain on households already struggling to make ends meet. While saving money is important, it’s crucial not to compromise on the cover you need.
“Striking a balance between cost savings and adequate protection ensures you’re financially secure in case of an accident. It’s worthwhile exploring different options, comparing quotes, and making informed decisions that prioritise both savings and quality cover.”
