Car insurance rises by up to £105 year-on-year

Drivers have been hit with a £105 year-on-year increase in car insurance, according to new data.

Details from Compare the Market show that the annual car insurance premium was up to £651 in March, representing a £105 or 19 per cent increase on the same month in 2022. Insurers have been raising premiums due to an increase in claim costs, with these put down to the rising price of second-hand cars and higher repair costs.

Though insurance premiums have increased for all age groups, drivers over the age of 55 are more likely to be paying more than they need, according to Compare the Market. A separate survey conducted by the comparison site found that 64 per cent of this age group are more likely to stay with their current insurance provider than shop around for a cheaper premium.

Julie Daniels, motor insurance expert at Compare the Market, said: “Drivers will be worried that the cost of car insurance is accelerating. Our research shows motor premiums have increased by up to 19% year-on-year.

“For drivers aged over 55, there is a particular tendency to stick with their existing provider each year. However, due to the steep increases in prices year on year, it’s now more important than ever for people to shop around and compare prices to check you’re getting a great deal.”

Compare the market states that car insurance premiums are ‘likely’ to remain high for the rest of 2023, though it states that drivers could save up to £411 by switching their insurance provider.