Car insurance prices have gone up by more than £150 in the first three months of the year as more drivers continue to get slapped with unaffordable premiums.
Prices for insurance were £157 higher in the first quarter of this year compared to last, with drivers demanding action to help put an end to the crippling costs.
According to figures from the Association of British Insurers (ABI), the typical car insurance price paid in the first quarter of 2024 was £635 compared to £478 for the same period last year.
The increase in costs has been to combat more drivers claiming on their policy with insurers paying out eight per cent more on average.
Do you have a story you'd like to share? Get in touch by emailingmotoring@gbnews.uk
Car insurance up one per cent in first quarter
GETTYMervyn Skeet, director of general insurance policy at the ABI, said: “We understand that car insurance costs are putting pressure on household finances.
“These figures show how competitive the motor market is, with insurers absorbing significant cost rises but keeping prices relatively stable.
“Even though these figures demonstrate a slowdown in price increases, we won’t be taking our foot off the gas when it comes to our work on tackling the cost of cover.”
The association had previously cited costs such as energy inflation, rising prices for paint and other raw materials as key reasons for cost rises.
In real terms, the ABI stated that prices are 1.3 per cent higher when compared to a previous peak at the end of 2017.
Last week the organisation said it would be stepping up its progress and support for drivers to help manage the costs for people paying for insurance on a monthly basis.
It launched a new Premium Finance Principles which outlined that drivers should clearly be told what they will be paying every month to boost transparency in the sector.
It called for insurers to provide a clear comparison of the total cost of paying annually and the total cost of paying monthly before drivers agree to the terms.
The association also recommended that anyone struggling with the cost of their cover speak to their insurer who may be able to help.
Earlier in April, Treasury Committee member Dame Angela Eagle, warned: “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.”
LATEST DEVELOPMENTS:
Car insurance up £157 since January
GETTYIn a separate Treasury Committee session, Charlotte Clark, director of regulation at the ABI, told the committee that part of the reason for insurance rises looking significant is due to it “coming off the back of the pandemic”.
