UK motor insurance premiums are now at their highest level since the launch of the car insurance price index by Confused.com and WTW in 2006.
“Drivers are seeing their car insurance premiums soar by as much as 90% as insurers battle a dramatic increase in claims costs, pushed higher by rising repair costs and labour shortages,” Tim Rourke (pictured), UK head of property & casualty pricing, product, claims, and underwriting at WTW, said in an emailed release.
“As poor economic conditions bite, we are seeing claims in vehicle theft increasing alongside a rise in fraudulent claims also to blame.”
According to the latest Confused.com Car Insurance Price Index in association with WTW, motorists in the UK currently pay an average of £924 for comprehensive motor insurance. Representing a 58% increase from a year ago and a 19% quarterly jump, the new average broke the previous record of £776.
WTW noted in the release: “All regions across the UK recorded soaring double-digit price rises in insurance premiums over the last 12 months.
“Increases ranged from 50% for drivers in Central and North Wales, taking their annual premiums to £613, to the largest annual percentage increase of 63% recorded in the West Midlands, where those buying new policies found their premiums costing £1,139, exceeding the £1,000 mark for the first time.”
The cheapest region for motor insurance is still the South West of England, where the average price for comprehensive cover stands at £597. Inner London remains the most expensive region, topping the list following a 61% rise from the third quarter of last year.
Below are the costliest regions when it comes to car insurance, according to the Q3 2023 index.
“For a second consecutive quarter, premiums have increased so rapidly that we’re seeing the highest prices recorded across all areas of the UK,” Confused.com chief executive Steve Dukes commented. “That’s because insurers are having to deal with a lot right now, such as an increase in claims and having to price for more expensive cars on the road – such as electric vehicles.
“As these adjustments happen, there will come a point where we see price growth settle. But when we look at how prices are affecting drivers right now, insurers need to be doing more to keep prices affordable; otherwise there’s a real risk that a large number of drivers could be priced off the road as motoring costs become unaffordable.”
It was highlighted that motor insurance premiums in the UK have now increased for eight straight quarters.
What do you think about this story? Share your thoughts in the comments below.
