Motor insurance premiums tick upwards as cost challenges increase

The average price paid by motorists for their motor insurance in the second quarter of this year rose slightly on the previous quarter to £419, according to the Association of British Insurers (ABI).

Its latest Motor Insurance Premium Tracker shows that the average premium paid in Q2 2022 for private motor insurance at £419 rose by £5 (1.3%) on the previous quarter, although this was still £11 lower than the same quarter in 2021.

The ABI said that the rise comes as insurers are finding it increasingly challenging to absorb rising cost pressures, such as higher second-hand car prices and more expensive vehicle repairs.

Callum Tanner, manager of general insurance at the ABI, said: “Insurers appreciate that these are difficult times for many households dealing with the rising cost of living. While, like many other sectors, motor insurers are facing higher cost pressures of their own, which are becoming increasingly challenging to absorb, they will continue to do all they can to keep motor insurance as competitively priced as possible.”

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Mark Dugdale