Misery for motorists with premiums rocketing

Drivers face huge hikes in the price of their car insurance when they come to renew their policies, with the average premium rising by 48% over the past year.

Data from Consumer Intelligence shows that premiums are now at their highest since the start of 2018, with car insurance becoming one of the most expensive household bills a family will face.

Millennials and older drivers have been hit the hardest. Those aged 25to 39 and 65 and over have seen premiums jump by more than 50%.

Motorists in London and Scotland have also seen a sharper rise in their premiums than people living in other regions.

The rises have been blamed on record highs, with the motor industry paying out £2.4 billion in claims in the first quarter of this year – up 14% on the same period in 2022.

The growing cost of repairs has also had an impact, with inflation behind rising energy bills and higher paint and materials costs.

However, some industry experts believe insurers could also be hiking prices to increase profits after the Covid pandemic.

The Financial Conduct Authority (FCA) has said it is continuing to monitor the market to make sure customers are getting a fair deal from their providers.  

 

Here’s some top tips to drive down the cost of your car insurance premium

• Limit your milage
• Pay annually
• Improve security
• Increase your voluntary excess
• Build up your no claims bonus discount
• Only pay for what you need
• See if it’s cheaper to buy add-ons as separate products
• Consider your cover type