A recent study conducted by Compare The Market has delivered concerning news for drivers, indicating an impending 52% increase in their car insurance renewal.
The research, part of Compare The Market’s Premium Drivers study has found that drivers will face a substantial increase in premium car insurance prices.
As of now, the average premium stands at £950, representing a significant rise of £326 over the last 12 months. The driving force behind this surge in costs is attributed to high inflation rates impacting the motor repair industry, leading to increased expenses for insurance claims.
Young drivers, in particular, are expected to bear the brunt of this surge, with their car insurance costs set to soar by £655, reaching an average of £2,002. However, older drivers aged 65 and above haven’t been spared either, experiencing a 57% increase on average in the past year.
Owners of popular car models, including Ford, Volkswagen, Audi, Vauxhall, and BMW, are grappling with a year-on-year premium hike of over £300 between December 2022 and December 2023.
The findings from Compare The Market’s research unveil a growing concern among drivers, with 78% expressing worry about the escalating cost of car insurance. 31% of drivers anticipate difficulties in covering these rising expenses.
Julie Daniels, a motor insurance expert at Compare The Market, commented on the alarming trend, stating, “Many drivers will be worried about the substantial increase in the cost of their car insurance. Our research shows the typical premium now costs £950, with lots of younger motorists likely paying even more than this.”
Amidst this unsettling scenario, Compare The Market urges drivers to proactively explore cost-saving measures. Daniels advised, “As household bills continue to rise, it’s so important for drivers to take a few minutes to compare prices from different providers when their car insurance is up for renewal. It’s quick and simple to look at what deals are available and could help you save hundreds of pounds.”
For valuable tips on saving money on your car insurance, you can refer to Compare The Market’s top tips on securing cheaper car insurance.
