The average price paid for comprehensive motor insurance was around a third or £157 higher in the first quarter of this year than a year earlier, according to figures from the Association of British Insurers . Based on analysis of policies sold, the typical price paid in the first quarter of 2024 was £635, marking a 1% increase on the previous quarter, the ABI said.
The ABI’s motor insurance tracker analyses nearly 28 million policies sold a year and the claims paid against policies. The association has previously cited costs such as energy inflation, rising prices for paint and other raw materials, rising courtesy car costs and the increased cost of second-hand cars as adding to overall cost pressures.
“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.” “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.”