More than 80 per cent of motorists saw their premiums increase last year as the backlash of the pandemic and inflationary pressures forced prices up for consumers.
As a result, car owners have also been forced to pay for premiums monthly instead of a lump sum as they can no longer afford the hefty fees.
People are now turning to compare sites to get the best value car insurance deals, according to Go.Compare data.
Around 15 per cent of surveyed consumers said that they have increased the excess on their policy to try and save money while eight per cent have tried to cut back on commodities such as legal cover with six per cent cutting back on windscreen cover.
Car insurance prices have risen in recent years
GETTY
An excess is an amount that needs to be paid up-front when making a claim on a car insurance policy, Go.Compare explained.
This is split into two parts, compulsory and voluntary. The insurer sets the compulsory excess while the voluntary excess is the amount the consumer can choose to pay on top of this.
In more drastic money saving measures, three per cent of surveyed individuals said they have resorted to selling their car and stop driving altogether.
Tom Banks, a car insurance spokesperson for Go.Compare said: “It’s been widely reported that premiums have been rising in the past 12 months and this research shows just how far and wide it’s impacting people.
“No one wants to pay more than they have to for their insurance, but cutting back on cover, or simply opting for the cheapest policy and not checking you have the cover you need, could leave you short if you need to make a claim.”
Offering some tips to secure cheaper car insurance, the comparison site said the best day to renew car insurance is 27 days before the renewal is due.
Another tip suggested adding a black box insurance policy, known as telematics, which is priced based on actual driving habits, making insurance cheaper for drivers.
In the application process, insurance prices could vary depending on the job category of individuals and how this is described on the forms, Go.Compare stated.
“If, for example, you don't commute, you may be able to find a cheaper policy by describing your insurance as being 'for social use’, the site added.
Banks highlighted how worrying it is that people are increasing their excess to get a better price on their premium, as while this may make the policy cheaper in the short-term, it could mean paying out a big lump sum if there is a need to make a claim.
Banks said: “While premiums are on the increase, it’s more important than ever that you shop around at renewal as insurance companies will change how they price for certain risks.
“Just because one insurance company was the right policy for you last year, it doesn’t mean it will be the same this year.”
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learner drivers might face higher insurance costs
PA
Drivers have also been warned about using more accurate job description word choices and the impact this can have on premium prices. Premiums could vary depending on which words with differences found in phrases such as being a ‘chef’ versus ‘cook’.