Car insurance rises by 16% due to repair bills & used car prices

As car insurance rises, Insurers blame the above-inflation rise in repair and replacement costs for the highest premiums in three years.

Contents

Why it happened and what you can do

It’s a necessary expense for every motorist, but it’s one that’s getting more expensive by the year. According to the Association of British Insurers (ABI), bills have risen by 16% since last year.

In this post, we’ll take a closer look at why this has happened and what you can do to keep your costs under control.

Why have car insurance bills increased?

The ABI cites rising costs associated with repairing and replacing vehicles as the primary reason for the increase.

Insurers are finding it difficult to absorb these costs, which are being passed on to motorists in the form of higher premiums. In particular, rising energy bills for workshops, soaring paint prices, and courtesy car costs are all contributing to the increase in the cost of repairs.

Another factor that’s contributing to the rising cost is the continued increase in used car prices.

According to the ABI, used car prices are now around 29% higher than they were two years ago. This means that the cost of claims is also rising, which in turn is driving up insurance premiums.

What can you do to keep your car insurance bills under control?

There are several things you can do to keep your insurance bills under control:

Shop around: Don’t settle for the first quote you receive. Shop around and compare prices from different insurers to find the best deal for you.
Increase your excess: If you’re willing to pay a higher excess in the event of a claim, you may be able to lower your premiums.
Improve your driving: If you can demonstrate that you’re a safe driver, you may be able to secure a lower insurance premium.
Consider a black box policy: If you’re a young or inexperienced driver, a black box policy could help you save money on your car insurance. This type of policy uses telematics technology to track your driving, and your premium is based on how safely you drive.

Conclusion

Bills have risen by 16% since last year, and insurers are struggling to absorb the rising costs associated with repairing and replacing vehicles.

However, there are things you can do to keep your insurance bills under control.

By shopping around, increasing your excess, improving your driving, and considering a black box policy, you can find the best deal for you and keep your insurance costs as low as possible.