Skip advert
Advertisement

Car insurance at record high as average premium reaches £924

Year-on-year rises reach 61 per cent in London, while insurers protect profit margins at the expense of drivers

Car insurance costs fall 14 per cent

A 19 per cent rise in the third quarter of 2023 has seen the average price of a car insurance premium hit a staggering new record high of £924, according to new data released by comparison site Confused.com.

Prices have rocketed by an average of 58 per cent or £338 compared to this time last year, the company claims, which is the highest annual rise since it started tracking premium prices in 2006.

Advertisement - Article continues below

The comparison website’s Insurance Price Index is based on more than 6m individual quotes generated in the last quarter, and gathers data on comprehensive premium prices. The brunt of the shocking rises is being felt across the board, but younger drivers are suffering the most, with 18-year-olds paying an average of £2,995 for an annual policy, which is a rise of 89 per cent (or £1,414) in the last 12 months.

It’s even worse for 17-year-olds, who have seen the price of their premiums almost double over the course of the last year. The average policy for those unfortunates has risen by 93 per cent, reaching an eye-popping £2,613.

According to Confused.com, reasons for the rapid surge in prices include the extra burden of cost associated with expensive to repair electric cars, parts shortages holding up repairs, and the high cost of used cars affecting replacement costs.

However we’ve also reported on the increasing rate of car crime, and especially the increasing number of expensive high-end SUVs such as Land Rovers and Range Rovers stolen using keyless-entry methods, and the lack of significant police intervention – with fewer than seven per cent of reported car crimes resulting in a charge.

Insurance companies too are squeezing every last drop out of drivers, it seems, with Britain’s biggest insurer Admiral reporting in August this year that it was focused on protecting its margins and reporting average premium increases of 21 per cent against an inflation index of around seven per cent.

Despite lower customer numbers in 2023 versus 2022, significantly higher (and still rising) average premiums resulting from rate increases led to 20 per cent increase in turnover in the first half of the year, Admiral said.

Time for new car insurance? Compare quotes from over 100 top insurers with our car insurance comparison tool powered by Quotezone...

Skip advert
Advertisement
Current affairs and features editor

Chris covers all aspects of motoring life for Auto Express. Over a long career he has contributed news and car reviews to brands such as Autocar, WhatCar?, PistonHeads, Goodwood and The Motor Trader.

Skip advert
Advertisement

Recommended

Cheapest cars to insure in the UK 2024
Cheapest cars to insure - header image

Cheapest cars to insure in the UK 2024

Looking for a car that’s cheap to insure? We’ve listed the cars with the cheapest insurance group ratings on sale in the UK today
Best cars & vans
2 Oct 2024
UK car insurance groups explained: what do they mean for you and your car?
Car insurance explainer

UK car insurance groups explained: what do they mean for you and your car?

The Association of British Insurers decides your car’s insurance group, from 1 to 50. Here’s what it means for you…
Tips & advice
27 Sep 2024
EVs are less likely to be written off than petrols or diesels

EVs are less likely to be written off than petrols or diesels

New data shows ICE cars have been written off at twice the rate of electric cars since 2015
News
18 Sep 2024
Is your job title adding £££s to your car insurance?
Car insurance

Is your job title adding £££s to your car insurance?

New data shows warehouse workers, healthcare assistants and chefs are hit hardest with the highest car insurance quotes
News
10 Sep 2024

Most Popular

A £10k electric car with a 100-mile range would surely be a sales success
Opinion - cheap EV

A £10k electric car with a 100-mile range would surely be a sales success

Mike Rutherford thinks there would be demand for an electric car with a modest 100-mile range if it only cost £10k
Opinion
17 Nov 2024
New cars that plummet in value can make brilliant used buys
Opinion - Vauxhall Corsa-e

New cars that plummet in value can make brilliant used buys

Editor Paul Barker takes a closer look at our 2024 Used Car Awards
Opinion
20 Nov 2024
New Jaguar logos unveiled as big concept reveal moves closer
New Jaguar logo 1

New Jaguar logos unveiled as big concept reveal moves closer

Jaguar has revealed its new logos and styling details ahead of its transition into a luxury EV brand
News
19 Nov 2024