Motor Insurance Premiums Hit Record High in 2023

Vehicle owners can expect to pay more for their insurance this year as motor insurance premiums reach a record high in 2023.

Vehicle owners can expect to pay more for their insurance this year as motor insurance premiums reach a record high in 2023.

During the second quarter of 2023, the average price paid for private comprehensive motor insurance was £511; a 7% rise on the previous quarter. This is 21% higher than the same quarter of 2022 and the highest since the ABI (Association of British Insurers) started its Motor Insurance Premium Tracker in 2012.

An article recently written by the ABI uncovered the average premium for motorists renewing their policy has risen by £36 on the previous quarter to £471, while the average cost for a new policy had increased by £21 to £566. The hike in premium costs is said to be due to ‘continual cost pressures’ that insurers are currently facing. This can be things such as the cost of vehicle repairs, energy costs and labour rates, all of which have pushed the price of motor insurance up considerably.

In the same article the Director of General Insurance Policy at ABI explained that insurers are trying to keep insurance as competitively priced as possible, but he also highlighted the ongoing challenges insurers are facing under the current climate. He advised anyone experiencing difficulties with affordability to speak with their motor insurer to see what options might be available, and that it can still pay to shop around for a policy that meets your needs at a competitive premium!