Cost of car insurance jumps 14%

Comprehensive car insurance premiums have increased 14% (£72) since Q3 2021, with UK motorists now paying £586 on average, according to the latest Confused.com.

The latest Car Insurance Price Index in association with WTW also found that motor insurance premiums have now risen for four quarters in a row, with a significant rise of 6% (£32) recorded in just the last three months.

Tim Rourke, UK head of property and casualty pricing, product, claims and underwriting at WTW, commented: “Car insurance prices have risen across the board as insurers have found it increasingly challenging through 2022 to absorb a bitter cocktail of rising cost pressures.

“Soaring inflation, rising accident frequency due to a post-pandemic increase in road traffic, higher used car prices, and a supply chain crisis resulting in more costly repairs have caused the biggest annual jump in premiums for five years.”

Louise O’Shea, chief executive officer at Confused.com, said: “This quarter has not only proved the most expensive of 2022, but figures show that this is the biggest annual increase in five years with premiums rising by 14%.

“With the cost-of-living crisis at the forefront of everyone’s minds right now, it’s no surprise that the cost of premiums are also increasing. But thanks to the large number of insurers, we still have a very competitive market.”

Image source: Canva

Mark Dugdale