Motor insurance cover is on the rise says new analysis from one of the leading price comparison websites.
The average £32 annual insurance increase comes with many drivers still being hit with a loyal penalty for remaining with the same insurer, even though the industry regulators have forbid the practice from taking place.
The rise is the biggest since the pre-pandemic levels, and a survey by Confused has found that the price increases could be even higher, with a poll of 2,000 UK drivers finding that half of those renewing in the second quarter of 2022 saw an increase of £41.
The Financial Conduct Authority has imposed strict guidelines around renewals, in order to stop companies for penalising those customers who stay loyal to their existing policy. But the Confused analysis shows that those who chose to shop around saved on average £54 if their renewal price was more expensive.
“With millions stung by the current cost of living, it can be disheartening to see that car insurance prices are also on the rise,” said Louise O’Shea, chief executive of Confused..
“As the latest data shows, we’re seeing the highest spike in prices since before the pandemic. With us all still adjusting to life after lockdown, it’s likely that this is due to the number of insurance claims being made increasing as we get back into some sort of routine.
“Unfortunately, this means that you might notice a price increase when renewing or shopping for your car insurance.”
According to the research, men are seeing being increases than women, with motorists in Inner London seeing the biggest rise, paying £74 more than they did in the second quarter of 2021, with average premiums in the capital at £882.