Proactive Investors - Car insurance in Britain is costing drivers £150 more than last year as premium prices jumped by a third, industry data revealed.
A typical insurance policy came in at £635 during the first three months of 2024, compared to £478 in the same period a year prior, research from the Association of British Insurers (ABI) found.
Insurance firms are believed to have increased the price of premiums throughout 2023 due to the cost of vehicle repair, replacement and theft having jumped.
Drivers looking to renew or move insurance providers are now being quoted between £500 and £749, Consumer Intelligence said.
It comes just three years after regulators set up rules aimed at preventing insurers from “price walking” – the process of quietly upping premiums paid by those who never switch insurance providers.
Although premiums are at record highs, the ABI noted how “motor insurance has tracked very close to inflation”.
Insurance companies have faced a 23% surge in costs since the end of 2017 and have been found to pay £1.14 in claims and expenses for every £1 generated in premiums.
ABI’s Mervyn Skeet said: “We understand that car insurance costs are putting pressure on household finances. These figures show how competitive the motor market is, with insurers absorbing significant cost rises but keeping prices relatively stable.
“Even though these figures demonstrate a slowdown in price increases, we won’t be taking our foot off the gas when it comes to our work on tackling the cost of cover.”