Motorists are facing higher car insurance premiums just as prices had fallen to a near three-year low, with the Middle East conflict cited as a contributing factor. Data from Moneysupermarket shows the average annual premium purchased through its site reached £751.25 in April, a 3% increase from £729.23 in February before the Iran war escalated.
The rise comes as a blow to drivers already grappling with soaring fuel prices due to the conflict and an increase in car tax in April. According to Confused.com, car insurance had dropped to an average of £711 in late March, the lowest in almost three years, representing a £66 decrease over 12 months.
Kara Gammell, car insurance expert at Moneysupermarket, explained that global events like the Middle East conflict disrupt supply chains and increase costs for fuel and shipping, which in turn affect UK consumers. She noted that rising costs for vehicle parts and repairs are now influencing premiums, as insurers pass on some of these expenses to drivers.
Gammell advised motorists due for renewal to shop around for quotes rather than auto-renewing, as premiums may continue to rise. Moneysupermarket recommends comparing quotes to find the best deal.
