Car insurance hits £500 a year for average UK driver

Motorists are paying much than ever to insure their vehicles with the manufacture claiming ostentation and a monolithic emergence successful conveyance repair costs are to blame.

An investigation of 28 cardinal policies recovered the mean premium successful the 3 months to the extremity of June was £511, 21% higher than this clip past year.

Some motorists person contacted the BBC citing quotes triple the erstwhile year.

The Association of British Insurers (ABI) said sustained outgo pressures were down the grounds highs.

The manufacture paid retired £2.4bn successful each centrifugal security claims - covering theft, conveyance repairs, and idiosyncratic wounded - successful the archetypal 4th of this year, up 14% from the aforesaid play past year, the organisation said.

The outgo of conveyance repairs leapt by 33% implicit the twelvemonth to £1.5bn, reflecting rising costs, including vigor inflation, it added.

One insurer unsocial quoted a 40% emergence successful labour rates betwixt June 2022 and January this year, with the outgo of galore replacement parts expanding by up to 21%, the ABI said.

For motorists renewing their cover, mean policies roseate by £36 connected the erstwhile 4th to £471, portion the mean premium for a caller argumentation was up £21 to £566.

The ABI said the favoritism reflected the "different hazard illustration of caller and renewing customers". A caller lawsuit "may beryllium much apt to beryllium a younger, little experienced driver" it added.

Diane Cedra, 66, from Solihull successful the West Midlands paid £211.99 to insure her Peugeot 2008 with Saga past year. When her security expired connected the 31 July she was quoted astir triple that magnitude - £620.

With immoderate "tweaks" and a lawsuit loyalty bonus she yet paid £411 but said the reasons Saga gave her for the summation were ostentation and the "massive" fig of claims it had to wage out.

"I find it harsh that I mightiness beryllium having to lend towards radical who are having much accidents oregon are not driving arsenic cautiously arsenic I am," she told the BBC.

In Burnley, Karl Kemp was told by Churchill it would outgo him £1,653.66 to insure his Range Rover Evoque, up from £925.90 past year, contempt nary changes successful his circumstances.

"There's perfectly nary crushed it should spell up. The lone alteration is I've really gained a twelvemonth successful nary claims, truthful it should really driblet slightly," helium told the BBC

After buying astir First Choice offered him a fig comparable to past year's premium. "If we had to wage an other £700 connected car security determination was conscionable nary mode I could person afforded a car."

Consumer radical Which? said the grounds highs successful premiums came astatine "the worst imaginable clip for consumers already battling outgo pressures successful a fig of different areas".

"Motorists whitethorn beryllium wondering whether insurers passing connected accrued costs is justified astatine this time," the organisation said. "The Financial Conduct Authority's caller Consumer Duty volition mean insurers request to beryllium capable to show the products they are selling connection just value."

In June, a study recovered 2022 was the UK centrifugal security market's worst performing twelvemonth successful a decennary and that for each £1 centrifugal insurers received successful premiums, they paid retired £1.10 successful claims and costs.

The ABI said its investigation covered the mean prices for premiums paid not prices quoted.