Comprehensive car insurance prices rose for the fifth quarter in a row to reach an average price of £629.
According to the Confused.com Car Insurance Price Index, produced in association with WTW, premiums rose seven per cent in the last three months of 2022 to cap a 19% overall increase throughout the year.
Male drivers aged 71 and over saw the greatest percentage increase, although the 24% rise they felt only takes their average policy to £456. This is less than a third the price of the average policy for males aged 17-20, which has now risen to £1,764.
Tim Rourke, UK Head of P&C Pricing, Product, Claims and Underwriting at WTW, said, “The last 12 months have been characterised by persistently high inflation and insurers adjusting to the new FCA pricing rules while maintaining margins. With supply chain disruption, labour shortages, lack of raw materials and increasing food, fuel and energy prices set to continue, the upward pressure on premiums, primarily driven by claims inflation, is set to continue well into 2023.”
Louise O’Shea, CEO at Confused.com, added, “Following the FCA pricing changes 12 months ago, we expected prices to increase, but perhaps not quite at this rate. It’s clear that insurers should be doing more to help consumers during difficult times.”
