Carinsurance prices hit record high
New figures show premiums
have risen by 21%, reports
Dean Sobers
Drivers are paying 21% more
for insurance than the
same time last year, an
industry body has said.
Insurers
The Association of British
(ABI) says that premiums for April to
June this year are the highest since it
started tracking prices in 2012. It says
the average cost is now £511. But
other groups have found the increases
to be even higher.
Price comparison site Confused.com
says it has seen a 40% increase in
prices over the same annual period.
It says prices are the highest they 've
been since its index began in 2006.
It publishes average figures reflecting
quotes offered through its website.
The steep increases come despite
inflation overall being under 10% and
starting to fall.
The industry suggests that most of
the blame is due to 'claims inflation'
- the bundle of costs associated with
settling claims. These include costs of
replacement parts, second-hand cars,
year from
energy and 1abour. In the
Jan-March 2022, vehicle repair costs
reportedly leapt by 33%.
Premiums had been at record lows
in 2021, largely due to reduced traffc
levels during the pandemic, >>
OCTOBER 2023 WHICH? MAGAZINE
