The ABI’s latest Motor Insurance Premium Tracker has found that the overall average premium paid for private comprehensive motor insurance was £478 in the first quarter of the year, 16% higher than the same period in 2022.
The average price paid for renewals rose by £8 to £436 while the average premium for a new policy was up £14 to £545.
The rise reflects increased cost pressures motor insurers face, such as energy inflation, higher paint and material costs (16%), and the rising price of courtesy car (30%).
Jonathan Fong, Senior Policy Adviser, Motor Insurance, said, “With households battling the rising cost of living, the last thing anyone wants is a higher motor insurance bill. Naturally, every motorist wants the best insurance deal, and insurers are doing all they can to keep motor insurance as competitively priced as possible. Yet, like many other sectors, insurers continue to face higher costs. The price of certain raw materials and energy costs are rising at rates well above general inflation, and these costs are becoming increasingly challenging to absorb.”
