One in three drivers has raised major concerns that higher car insurance premiums could push them to give up driving altogether.
It comes as more motorists have been feeling the pinch following a dramatic surge in insurance costs over recent years, with prices rapidly increasing by 82 per cent between 2021 and 2024.
The cost of insuring a car is still significantly more expensive than it was just three years ago, with the average UK premium being just £561, compared with £769 at the end of last year.
A new survey found that due to price hikes, motorists have been struggling to afford insurance, with 33 per cent saying they would reconsider driving altogether.
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The rise in costs for owning a vehicle has pushed drivers to reconsider travelling on UK roads
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Ian Wilson, car insurance expert and managing director at Tiger.co.uk, said: "Motorists have been hammered by the accelerating cost of car insurance over recent years, leaving many people with no choice but to give up on driving completely, as they are being priced out of the market.
"While the average cost of car insurance in the UK has started to decrease slightly – a trend which will hopefully continue throughout 2025 - the reality is that premiums currently remain significantly higher than they were just a few short years ago."
Wilson added that taking into consideration rising road tax, repairs and servicing, "many drivers are being stretched to the limit financially".
The poll also found that over two-thirds (69 per cent) of motorists have been forced to change their driving habits to keep up with insurance costs.
This includes reducing their mileage, sharing one vehicle for the whole family and using their cars exclusively for social journeys rather than commuting.
According to the Association of British Insurers, insurance companies paid out an unprecedented £11.7billion in car insurance claims in 2024, as increases in theft and repair costs continued to impact premiums.
Vehicle repair costs totalled £1.9billion in the fourth quarter of 2024, taking the yearly total to £7.7billion, the ABI detailed.
Mark Shepherd, head of general insurance policy at the ABI, had previously detailed how the group has been working hard to help tackle the cost of motor insurance since average premiums have fallen from their peak.
He said: "However, we recognise that the price of cover remains a strain on household finances whilst the industry faces significant cost pressures. Industry is doing all that it can, but it is now for Government to take the necessary action to combat high claim costs."
Meanwhile, over three-quarters of people also said they don’t let their policies automatically renew, which Wilson explained is one of the best ways to find savings on annual premiums.
A further 70 per cent stated that they switch providers each year in search of a better price, with experts consistently calling on motorists to shop around for the best deal.
While the insurance industry has been working to reduce the price and impact on drivers, changes to the Insurance Premium Tax could derail progress. The levy is a tax on general insurance premiums, which has been capped at 12 per cent since 2017.
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Car insurance providers paid out £11.7billion in car insurance claims last year
GETTYShepherd warned: "It’s vital that Government does not further increase costs for hard-working households and businesses by raising Insurance Premium Tax at the upcoming Spring Forecast.
"We look forward to continuing to work with the government and wider sector to help support drivers and tackle claims costs."
