UK motorists are facing steep increases in car insurance premiums, with some reporting renewal quotes up to 70% higher than last year. Despite a drop in fuel prices from 2022 highs, the cost of living crisis continues as insurance becomes the latest household bill to surge.
Official data from the Office for National Statistics (ONS) shows car insurance prices rose 43.1% in the 12 months to June 2023. However, many drivers report even larger hikes, with Direct Line and Saga customers expressing shock at renewal documents showing increases of 50% to over 75%.
One Direct Line customer on Trustpilot described a 75% rise with no change in circumstances, while a Saga policyholder saw a 77% jump to £2,044 despite no alterations. Both firms blamed higher costs and claims inflation, including expensive spare parts and longer repair times.
The industry's own figures, from the Association of British Insurers (ABI), show average premiums rose 16% in the first quarter of 2023 to £478, but the ONS data suggests a sharper rise. The discrepancy arises because the ONS tracks quotes, while the ABI tracks actual prices paid, accounting for changes like removing add-ons.
Motorists are advised to shop around for better deals, as many have done after receiving high renewal quotes. Direct Line and Saga encourage customers to compare quotes before renewing, highlighting the importance of switching insurers to avoid excessive costs.
