Premiums soar to record high
The Association of British Insurers has reported that average comprehensive motor premiums have risen to record highs.
Its premium tracker analysis 28 million motor insurance policies in the UK and found that the average premium paid for private comprehensive motor insurance was now up £511. This is up seven per cent on the previous quarter and 21% higher than the second quarter of 2022.
The ABI attributed these sharp increases to a 33% rise in vehicle repair costs, plus higher labour rates and a 12-21% increase in replacement parts.
It also revealed that insurers paid out £2.4bn in all motor insurance claims in the first quarter of this year, which is up 14% on the first three months of last year.
Mervyn Skeet, the ABI’s director of general insurance policy, said: “These continue to be tough times for many motorists and motor insurers alike. With many families facing higher cost of living bills, no one wants to see the cost of their motor insurance rise. Insurers remain determined to ensure that motor insurance remains as competitively priced as possible, but this has become increasingly challenging, given the continued rising costs that they are facing.
“We would urge anyone concerned about being able to afford their insurance to speak to their motor insurer to see what options might be available. And despite cost pressures, it can still pay to shop around to get the policy that best meets your needs at the most competitive price.”
