As drivers budget for the year ahead, they face the prospect of an unwelcome increase in the price of motoring – a rise of 10% in insurance premiums. New figures show that the average annual premium exceeds £700, a sharp increase on the same time last year, as the end of travel restrictions increases the risk of people getting into accidents.
Figures from comparethemarket.com for Cash show that the average premium comes in at £703 a year for new customers – up £67 on last January. The rises include both comprehensive cover, which has gone up by £63 to £679 a year, and third-party, which has increased by £56 to £1,621. The figures are calculated by taking the average of the lowest five prices on the market.
Drivers with diesel cars have seen their premiums go up to an average of £716 from £658 last January. Petrol vehicles, meanwhile, are up to £695 from £621 in 2021. Electric car drivers, however, saw their bills go down from £678 to £629 on average.
One factor behind the increase is the end of lockdown restrictions. As drivers did not need, or were unable, to get behind the wheel for significant parts of last year, premiums were lower. But with the relaxation of restrictions comes freedom to get back on the roads, and the possibility of more collisions, says Ryan Fulthorpe of price comparison site GoCompare.
“Last January we were in lockdown, which meant there were fewer people on the roads and in accidents, therefore claims costs and insurance costs were lower. Now we are in a new normal, those prices have been rising,” he says.
Insurers have also seen the cost of repairs to vehicles go up. The British Insurance Brokers’ Association (BIBA) says that more sophisticated cars can result in higher bills. “The costs of car
Read more on theguardian.com