Nine rules drivers should follow to avoid huge car insurance hike

Traffic on the A500 towards Kidsgrove -Credit:Stoke Sentinel
Traffic on the A500 towards Kidsgrove -Credit:Stoke Sentinel

Motorists are being urged to follow a set of rules - to avoid a triple hike in car insurance. It comes as millions of drivers face significant increases in their premiums, with some seeing their costs double or even triple compared to the previous year.

The Association of British Insurers has reported that the average price of comprehensive motor insurance rose by around 33 per cent (£157) in the first quarter of 2024, compared to the same period in 2023.

The average cost during the first quarter of 2024 was £635, according to ABI, but many have experienced much larger increases. BirminghamLive reports how one motorist has reported their car insurance had risen by £300 annually, with the cheapest quote they could find on comparison sites being £1,300.

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Another member found their annual cost had increased by £500, and several others reported their premiums had doubled. One driver with 25 years of no claims was quoted nearly £1,000, while a new driver couldn't find anything less than £200 a month. Another was given a renewal price of £1,400, a shocking increase from the £400 they paid last year, representing a more than triple (350 per cent) rise, reports Birmingham Live.

It has left fed-up motorists questioning just why costs have sky rocketed. Michael Foote, founder of, has shed light on the recent surge in car insurance costs.

He said: "During the pandemic, essential trips were the only ones we were allowed to take, leading to a significant decrease in cars on the roads and a subsequent dip in car insurance costs. However, as the world gradually returned to normal, road traffic has increased, elevating the risk of accidents and consequently driving insurance costs back up."

"This, combined with the escalating expenses associated with providing insurance, such as higher energy costs, increased prices of paint, and the provision of courtesy cars, has created the perfect price storm. Many drivers are now confronted with exorbitant insurance premiums, placing strain on household budgets. It's crucial not to automatically renew your car insurance without exploring alternative options and reassessing factors such as mileage, coverage level, and excess. With a bit of dedicated research, savings can be found."

He also offered nine essential tips for motorists looking to cut their insurance bills.

  1. Use price comparison websites: Each insurance provider will use their own algorithm to assess risk, so the price of insurance can vary significantly. Use comparison sites to compare prices from different insurers, and use your findings to haggle with your current provider to get your price down.

  2. Consider third-party cover: Fully comprehensive cover offers the most protection, but you'll pay a premium for it. Consider whether third-party or third-party, fire, and theft cover would work for you.

  3. Maintain a good credit score: Insurers may take your credit score into account when calculating your premium, so it's important to maintain a good credit rating.

  4. Opt for a higher excess: Choosing to pay a higher voluntary excess if you need to make a claim can lower the cost of your insurance, but be realistic with what you can afford to fork out upfront just in case you do need to make a claim.

  5. Drive less: Insurance providers will often offer lower premiums to motorists who drive fewer miles. Consider regularly walking or cycling if you can to bring down your annual mileage - you'll save on fuel costs too.

  6. Improve security: Fitting your car with an approved alarm, immobiliser, or tracking device can reduce the risk of theft, which means your provider will deem it less risky to insure your car.

  7. Pay annually: If you can afford it, paying your premium annually rather than monthly can currently save you money, as insurers often charge interest on monthly payments. (This is soon to change).

  8. Bundle your insurance policies: If you need home insurance, consider taking it out with the same insurer as your car insurance provider to get a discount.

  9. Avoid modifications: Modifying your car can increase your premium, so it's worth researching the potential cost impact on your insurance

According to the Association of British Insurers (ABI), insurers are still absorbing rising costs, with the average claim paid increasing by 8% to hit a record £4,800 in the first quarter of this year. The ABI notes that claims inflation has not yet stabilised, citing growing costs for repairs, replacement vehicles, and theft.

Treasury Committee member Dame Angela Eagle voiced her concern back in April during an insurance hearing. She said: "My constituents and many people who write to the committee feel that insurance is becoming more of a rip-off. Because the price is going up, it's harder to make a claim; people, when they do make a claim, often have to wait a very long time or aren't dealt with very fairly. And that's particularly the case for insurance that's compulsory, such as driving insurance."

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