average price

More

Car insurance costs pushed up by paint and energy prices

  • March 1, 2023

Rising paint prices and higher energy costs were among the reasons for a leap in the cost of motor insurance late last year, a trade body has said.

The average price paid for cover rose by 8% in the final three months of the year, compared with the previous quarter, the Association of British Insurers (ABI) said.

The typical premium of £470 was up 7% on the last three months of 2021.

Repair and courtesy car costs were factors in the increase, the ABI said.

The rise in the cost of paint and the jump in energy prices were among the factors that made vehicle repairs cost more, the trade body said.

Jonathan Fong, senior policy adviser of general insurance at the ABI, said: “Every motorist wants the best insurance deal, especially when coping with cost-of-living pressures, and insurers continue to do all they can to keep motor insurance as competitively priced as possible.

“Yet, like many other sectors, insurers continue to face higher costs, such as more expensive raw materials, which are becoming increasingly challenging to absorb.

“Anyone concerned about being able to continue paying their motor insurance premium should speak to their insurer about any alternative payment options that may be available.”

The price paid for renewing an existing motor insurance policy was typically £428, the ABI said, whereas the average price paid for a new deal was a record high of £531.

Rules introduced by the City regulator, the Financial Conduct Authority, in January are designed to ensure people who are loyal to the same insurer are not penalised for doing so.

The rules state that the price paid by renewing customers for motor and home insurance is no greater than the price charged to an equivalent new customer for the equivalent policy bought through the same

Read the rest
More

Report: Price of comprehensive car insurance in NI remains well below UK average

  • September 12, 2022

Comprehensive car insurance in Northern Ireland on average is far below the UK as a whole, according to a new survey.

he average price of insurance per year here is £496, according to the confused.com insurance price survey.

The highest average price across bands here, running from young drivers to the oldest, is £540 while the lowest is £451. The company would not immediately give region-specific details or on the different bands.

According to the survey, the average price of insurance across the UK is £554, up from £522 a year ago, a 6% increase.

Premiums increased by £32 in the last 12 month across the UK, according to the survey, carried out in association with WTW, an advisory and broking company.

Motor insurance premiums have risen in the last three quarters, but there was only a small rise of one per cent, or £4, in the last three months.

The index is based on price data compiled from over six million customer quotes per quarter.

Tim Rourke, of WTW, said: “A combination of rising accident frequency after the pandemic lull and surging inflation sees upwards pressure on insurance prices coming from claims costs and repairs.

“These challenges are compounded by insurers also having to respond to the FCA’s pricing reforms, effective from January, which bans renewal prices being higher for existing customers than for new business.”

From April to June 2022, the cost of comprehensive car insurance increased the most in Outer London, where drivers saw a quarterly rise of 3%, £17, with average premiums now at £704.

Drivers in the South of England saw the steepest quarterly drop in prices, with their insurance premiums decreasing on average by one per cent to £437.

Inner London remains the most expensive region, where prices are now on average £882, having

Read the rest