Why has the price of car insurance gone up?

It’s an unavoidable fact that car insurance has become a lot more expensive in the last year. The latest Consumer Intelligence data shows a 67.2 per cent jump in the average car insurance quote year-on-year, while the most recent quarterly premiums data from the ABI sits at a record high. But what’s behind this increase?

  • Inflation, and the related rise in energy costs, have pushed up how much a provider has to pay out when you make a car insurance claim
  • The cost of vehicle theft payouts jumped 35 per cent in Q3 2023, longer repair times caused the cost of providing replacement vehicles to surge 47 per cent, and repair costs leaped by 32 per cent, according to the ABI
  • Providers handed out a record £2.54 billion in motor claims between July and September 2023. The provider then passes some of these costs onto customers, often regardless of your personal driving history

On top of that, there’s also the insurance premium tax, which makes up 12 per cent of every premium, and now averages nearly £100 a year across car and home insurance policies.

Because of all this, now, more than ever, it is a good idea to use a price comparison website in order to find the cheapest car insurance you are eligible for.

In partnership with MoneySuperMarket

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It’s an unavoidable fact that car insurance has become a lot more expensive in the last year. The latest Consumer Intelligence data shows a 67.2 per cent jump in the average car insurance quote year-on-year, while the most recent quarterly premiums data from the ABI sits at a record high. But what’s behind this increase?

It’s an unavoidable fact that car insurance has become a lot more expensive in the last year. The latest Consumer Intelligence data shows a 67.2 per cent jump in the average car insurance quote year-on-year, while the most recent quarterly premiums data from the ABI sits at a record high. But what’s behind this increase?

It’s an unavoidable fact that car insurance has become a lot more expensive in the last year. The latest Consumer Intelligence data shows a 67.2 per cent jump in the average car insurance quote year-on-year, while the most recent quarterly premiums data from the ABI sits at a record high. But what’s behind this increase?

This is an H3 in the content section and second column

It’s an unavoidable fact that car insurance has become a lot more expensive in the last year. The latest Consumer Intelligence data shows a 67.2 per cent jump in the average car insurance quote year-on-year, while the most recent quarterly premiums data from the ABI sits at a record high. But what’s behind this increase?

It’s an unavoidable fact that car insurance has become a lot more expensive in the last year. The latest Consumer Intelligence data shows a 67.2 per cent jump in the average car insurance quote year-on-year, while the most recent quarterly premiums data from the ABI sits at a record high. But what’s behind this increase?

It’s an unavoidable fact that car insurance has become a lot more expensive in the last year. The latest Consumer Intelligence data shows a 67.2 per cent jump in the average car insurance quote year-on-year, while the most recent quarterly premiums data from the ABI sits at a record high. But what’s behind this increase?