New research has found that car insurance premiums have soared by a staggering 42% in the past year, according to a new study by Vanarama.
Other insurance brands, plus Consumer Intelligence have estimated the rises to be higher, as much as 60% or so. The primary reason for the rises is the cost of processing claims. But another factor affecting the way your premium is calculated is your job, with quite an antiquated selection of job titles still being used by the major comparison sites – any parachute packers out there reading this? Given the rise in working from home and reduced Mon-Fri commuting, the question needs to be asked; should insurers start from scratch on how their claims algorithm calculates job vs overall risk?
Anyhoo, Vanarama has analysed how much your job title has affected car insurance for the past four years, with the latest edition being released for 2024. Vanarama has used an average driver profile to look at 2024 car insurance premiums for 100 job titles across a range of sectors for both petrol and EV drivers, to see how much your job title affects the price you pay.
Key Findings:
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Traders will pay £744.02 per year, the most for petrol car insurance in 2024
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Graphic Designers have had the biggest increase in their petrol car insurance, a massive 66% increase
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Those working in HR will see the smallest increase to their premium, only seeing a 22% increase lifting the cost from £435.27 last year to £529.16.
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Wholesale, Retail & Repair Of Motor Vehicle sectors top the premium leaderboard with £657.58 insurance per year, while People in the Accommodation & Food Service sector will pay the most for EV Insurance at £1,492.54 per year
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Chefs pay £1,565.83 for EV insurance, more than any other workers
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On average, EV drivers will pay £1,150.46 per year for car insurance in 2024.
Traders will pay the most for car insurance in 2024
Traders are in for a significant shock in the coming year as their insurance costs are set to surge from £474.14 in the previous year’s research, to a staggering £744.02, marking a colossal increase of 57%. Following closely are mechanics, who will see a 61% rise in their 2024 insurance premiums, reaching £728.26 from the previous year’s £453.44.
Graphic designers complete the top three with a premium hike from £428.80 to £711.96, signifying a 66% increase – the biggest increase of the year. HR Managers will have the lowest insurance premium, however still seeing a 22% increase lifting the cost from £435.27 last year to £529.16.
Insurance premiums soar by 42% for 2024
Stepping back and examining the anticipated insurance premium increases on an individual job basis reveals that, on the whole, the United Kingdom will experience a substantial 42% spike in insurance costs in 2024 compared to the previous year.
When we shift our attention to the sector level, prices exhibit a slightly smaller but still significant increase of 41% from the preceding year.
The average cost of UK car insurance in 2024 is now £613.91 per year – an 81% increase on 2020’s figure, £339.16.
Chefs pay £1,565.83 for EV insurance, more than any other workers
Chefs will pay the most for insurance than any other workers, paying £1,565.83 in 2024, up a massive 138%. Social workers come in next, with insurance expenses of £1,505.87 for the upcoming year, another huge rise to a 130% surge from the previous year’s £655.68. The third spot is occupied by physiotherapists, who will experience a 136% increase in their 2024 premiums, rising from £625.96 to £1,479.03.
If we look solely at the percentage increases, we can see that people working in sales are about to be stung the worst. Their EV insurance is set to increase by an astronomical 185% from the previous year. Sales workers are currently spending around £471.29 on EV insurance, which is set to explode up to £1,365.98.
At the other end of the leaderboard, secretaries will be pleased to discover that they will be paying the least for EV insurance in 2024. It is estimated that secretaries will pay around £954.09, but as with all the sectors, that has risen from £445.56 in 2023, which is a 114% increase.
EV drivers will pay £1,150.46 per year for car insurance in 2024
Next year, the average annual car insurance cost for electric vehicle (EV) drivers is expected to be approximately £1,150.46. Not only that but for those that have recently switched to an EV, each and every worker will face higher insurance expenses for insuring an EV compared to a petrol or diesel car, with the average cost increase for switching to an electric car amounting to £536.55 per year.
We’ll also see a significant increase in EV insurance premiums, with an average rise of 129% compared to the previous year. This means that EV drivers are now paying more than double the insurance costs they incurred in 2023. The increased expense demonstrates that, despite the benefits of electric vehicles, insurance coverage for them has become notably more expensive in the current year.
Methodology:
Following our car insurance reports in 2020, 2021 and 2022, this update finds 2024 insurance costs for the same 100 job titles, which were the UK’s most common at the time of researching our first report.
To reduce the variables and focus on the discrepancy in premiums on job title alone, all three reports have been created using the same average driver profile – this is outlined below and covers many factors such as the car being insured, location, relationship status and even where the car is kept at night. The only changes have been the average driver’s age each year and the number of no-claim years.
In all cases, the cheapest premium available was taken from MoneySuperMarket for each job title. Data gathered November 2023.
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