By: 23 December 2022
Consumer Intelligence: Motor insurance premiums rise 17.4% in the past year

The average cost of the most competitive motor insurance deals has increased 17.4% in the past year, according to Consumer Intelligence.

The latest motor insurance price index from Consumer Intelligence shows that price rises in car insurance are outstripping inflation for the economy as a whole at 10.7%, with average premiums now costing £877.

Georgia Day, senior analyst at Consumer Intelligence, commented: “The surge has been expected this year following the ban on price walking. We have not found it surprising that prices have increased as a result.”

She added: “What is surprising, however, is the number of product launches we are seeing, especially the growing number of essentials products. To highlight this, the number of total brands quoting across the PCW market reached its highest point since our tracking began in 2014.”

Premium rises for the over-50s are running at 21%—or more than double the rate for the under-25s at 9.1%, with motorists in Wales facing the biggest increases at 24.5%.

Prices have increased just 0.1% for the under-25s in the past three months, which saw premiums for the market as a whole rise 3.4%.

Telematics quotes are playing a more prominent role in the most competitive deals, according to Consumer Intelligence.

The data shows telematics quotes make up 32% of the best deals, which is the highest level since Consumer Intelligence first started tracking it in 2014.

Average overall premiums have increased 32.3% since October 2013 when Consumer Intelligence first started collecting data.

But premiums are down 24.7% over the period for the under-25s, while they have increased 67.7% for the over-50s and 44.2% for those aged between 25 and 50.

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