Everyone knows that motor premiums are rising but there is some varying data on by what percentage exactly. Here’s the latest view;
Motor insurance prices rose by only 2.8% in October 2023 but the movement culminates in premiums being 48% higher than last year. Pearson Ham Group has found that the price for car insurance saw an increase of 2.8% in October. This represents the most modest monthly increase observed throughout the year. However, the cumulative effect has driven the annual premium increase to an all-time high of 48%.
Motorists were therefore quoted an average insurance price of £577 in October, based on the ABI average price paid for motor insurance from July to September 2023.
While the extent of movement in October may provide some relief to brokers and policyholders, there are striking regional variations in the rate movement. Scotland and Northern Ireland witnessed larger increases, with premiums rising by 3.5% in both regions. Scotland, in particular, now holds the distinction of having the highest yearly premium movement at 53%. On the other hand, the East Midlands enjoyed the smallest 12-month motor insurance increase at 45%.
One of the notable trends from the results is the differing impacts on different age groups. Drivers aged over 60 have seen their insurance prices increase by a substantial 51% over the past year. In contrast, under 26’s have experienced a more moderate increase of 45%, indicating a relatively more favourable market for younger drivers.
Stephen Kennedy of Pearson Ham Group, said:
“The headline revelation of a cumulative annual motor premium surge of 48% remains unprecedented. Clearly this is due to the continued inflationary challenges faced by insurers, escalating costs and delays in repair and supply chains.
“Nevertheless, the comparatively modest rise of 2.8% observed in October suggests a potential stabilisation in motor premium increases. The upcoming months will reveal whether this trend materializes into an expected reduction in motor premiums.”
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