The Association of British Insurers (ABI) has released the latest edition of its motor insurance premium tracker, which shows an increase in the average price paid for car insurance in the first quarter both from the fourth quarter and Q1 2022.
According to the ABI’s data, motorists paid an average of £478 for private comprehensive motor insurance in the first three months of 2023. Compared to Q4 2022, the figure represents a 2% rise; to Q1 last year, 16%.
Additionally, the current average premium is the highest since the fourth quarter of 2019.
“With households battling the rising cost of living, the last thing anyone wants is a higher motor insurance bill,” ABI senior policy adviser for motor insurance Jonathan Fong said in a release. “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.”
It was noted that average paint and material costs are up by nearly 16%, while repairers are seeing a 30% jump in courtesy car costs. Repairs are also being impacted by energy inflation.
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