Average car insurance costs reach record high

The average cost of car insurance has hit an all time high as premiums rose to almost £1000 in the last quarter of 2023.
Insurers have been reacting to claims inflation in 2022 with rising costs of car parts, labour and second-hand cars, as they attempt to stem the flow of losses and protect share prices.
Some motorists are seeing increases of over 90%, with drivers in London now paying the most expensive premiums, young drivers have also been hit hard.
All this means more misery for households reliant on a motor vehicle and another blow to add to the existing cost of living crises.
There are steps you can take; some clients are electing to select a higher voluntary excess to counter price increases, some are choosing to reduce cover limits, third party only cover is still available from some insurers.
However any action to reduce cover or payments should be taken with advice from your insurance professional first, so that you understand its impact in the event of a claim or loss.
We suspect that we are now at the peak of the premium increases and whilst you may not see any noticeable reductions in the next few month, the average premiums should start to fall as we progress through 2024.
As always choose an independent broker, one who can review a comprehensive panel of insurers to give you the best premium and advice unique for your own circumstances