“Suspicion Of ‘Cartel’ Behaviour From Insurance Companies” | Motor Insurance Increases By A Third

The average price for comprehensive motor insurance in the UK surged by 33% or £157 in the first quarter of this year compared to the same period last year, according to the Association of British Insurers (ABI).

The typical price paid in the first quarter of 2024 was £635, a 1% increase from the previous quarter, the ABI reported.

In contrast, the average premium in the first quarter of 2023 was £478.

The ABI noted that the 1% quarterly rise suggested a slowdown in the sharp increases seen throughout 2023.

Insurers are grappling with rising costs, with the average claim paid climbing 8% to a record £4,800 in the same period.

Claims inflation continues to soar, driven by higher costs for repairs, replacement vehicles, and theft, according to the ABI.

The ABI’s motor insurance tracker, which reviews nearly 28 million policies annually and their claims, highlights significant cost pressures from energy inflation, increased prices for paint and raw materials, higher courtesy-car costs, and the soaring cost of secondhand cars.

Russell Quirk speaks with Money Magpie UK Director, Jasmine Birtles.

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