What’s happening to car insurance premiums?
Car insurance premiums are on the rise once again, according to the latest report from Confused.com.
The comparison website’s quarterly index found that the prices quoted to drivers increased by an average of 6% year-on-year between April and June 2022.
Here, Which? takes a look at what’s happening to the cost of car insurance and offers advice on how much notice you should take of headline figures.
What’s happened to car insurance prices?
The average car insurance premium has risen to the highest level in nearly two years, according to new research.
Confused.com found that premiums increased by £32 (6%) year-on-year in the second quarter of 2022, to reach an average of £554.
Louise O’Shea of Confused says: ‘With all of us still adjusting to life after lockdown, it’s likely that price rises are due to a rise in insurance claims as we get back into some sort of routine.
‘While prices are increasing, we know that car insurance is one area where you can still save money, which could help balance out price hikes in other areas.’
How much could you save by switching?
Confused says loyal customers are facing some of the biggest price increases to their premiums.
Its survey of 2,000 drivers found 45% of those who’d renewed their policies between April and June had seen their premiums increase, by an average of £41.
The comparison site says drivers who are quoted a higher renewal price by their provider could save £54 by shopping around and switching insurers.
Have the FCA’s changes had an impact on insurance pricing?
In January, the Financial Conduct Authority