Drivers who have car insurance policy face being forced to pay £55 more

James Rodger

12 November 2024 at 9:23 am·2-min read

Drivers who have car insurance policy face being forced to pay £55 more — -Credit: (Image: Reach Publishing Services Limited)

Motorists are being forced to pay £50 more on car insurance as thefts and inflation see costs skyrocket. Drivers and road users are paying roughly £50 more for car insurance than last year, according to new data, as the Cost of Living crisis continues.

The Association of British Insurers found that average car insurance prices were priced at £612, nine per cent higher than in the third quarter of 2023 - £55. Mervyn Skeet, ABI director of general insurance policy, said: “While our latest figures show the second consecutive quarterly drop in average motor insurance premiums, we know that the industry continues to face significant cost pressures, and the price of cover remains a strain on household finances.

“We remain determined to do all we can to support motorists. As part of this, we’re committed to playing our part in supporting the Government’s taskforce, and we look forward to bringing our ideas and expertise to the table, contributing to this initiative on behalf of our members.”

The price of premiums fell 2% in Q2 having kicked off 2024 with a 1% rise. Despite the latest reduction the average cost of motor insurance was £50 (9%) higher than the same period in 2023 due to strong hikes at the end of that year.

In total, insurers paid out £2.9 billion in motor insurance claims in Q3 2024 – up 14% on £2.5 billion paid in the same period last year. While the average claim paid remained stable from Q2 2024 to Q3 2024 at a value of £4.8k, it was 8% higher than Q3 2023.

Repair costs totalled £2 billion for the quarter, which is 26% higher than Q3 2023. The average claim for theft of a vehicle dropped in Q3 2024 by 7% compared to Q3 2023 to £12.2k, but theft from a vehicle increased by 17% to £3k.

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Drivers who have car insurance policy face being forced to pay £55 more

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