The average car insurance premium has risen by £51 year-on-year in the second quarter of 2022, according to new research.
Comparethemarket’s Premium Drivers research has found that the average annual motor premium now comes in at £704, compared with £653 in the same three-month period in 2021.
The increase makes it the most expensive quarterly average for insurance since the fourth quarter of 2020 when it stood at £724. Comparethemarket says that the rise in premiums comes as a result of increased costs for insurers, including the rising cost of used cars and higher repair prices.
The cheapest premium for the period April to June stands at £582 on average, though this is still considerably more than the £548 recorded for the same period last year. This ‘widening gap’ between the cheapest and average premiums means that larger savings are there for motorists to take advantage of, according to Comparethemarket, with buyers able to cut the cost of their premiums by switching insurers when their policy ends.
Julie Daniels, motor insurance expert at comparethemarket.com, said: “Drivers will be concerned that the cost of car insurance is rising when household finances are already under pressure from high fuel prices and the wider cost of living crisis. Our figures show the average premium has increased by £51 year-on-year due to the rising cost of repairing or replacing vehicles and higher value of second-hand cars.”
Younger drivers could see the benefit of the largest savings by switching insurance providers. In fact, the average premium for drivers aged between 17 and 24 stands at £1,247 – £135 more than in the same three months during 2021. However, shopping around when a policy comes up for renewal could save an average of £259.
The end of Covid-19 restrictions has also seen a real increase in traffic, pushing up the likelihood of accidents and, as a result, driving up the number of claims.
Daniels added: “Drivers looking to cut the cost of car insurance should consider shopping around for a cheaper deal when their policy comes up for renewal. Motorists could save an average of £122 by switching insurers. As car insurance for young drivers is so expensive, it is a particularly good idea for these motorists to shop around. This could typically save young drivers more than £250.”