The average motor insurance premium has risen by £51 year-on-year in the second quarter of 2022, according to the latest premium drivers research from comparethemarket. The typical premium is now £704 compared with an average of £653 for the same three-month period in 2021.
The increase in the cost of car insurance means that this is the most expensive quarterly average since Q4 2020, before the Covid, when it stood at £724. The rise in premiums results from increased cost pressures for insurers, including an uplift in the value of second-hand cars and higher repair costs. The end of Covid restrictions has also led to more traffic, increasing the likelihood of accidents and subsequent claims.
In addition, the cheapest quoted motor premium has risen to an average of £582 in the second quarter of 2022 – a £34 uplift year-on-year. This widening gap between the cheapest and average premium means more considerable savings are available to motorists who switch insurers when their policy ends. Drivers could save £122 by shopping around for the cheapest deal, which could help offset the rising cost of living for some households.
Young drivers could benefit from the most significant savings by switching car insurance. The average premium for drivers aged between 17 and 24 stands at £1,247 – £135 more than in the same three months in 2021. However, if young drivers shop around for the cheapest deal when their policies come up for renewal, they could save an average of £259. Switching to a telematics policy could also help young drivers save money on their insurance.
Julie Daniels, the motor insurance expert at comparethemarket, 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 the higher value of second-hand cars.’
‘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 an excellent idea for these motorists to shop around. This could typically save young drivers more than £250.’
‘A quick and easy way to find a great deal ahead of your renewal can be by signing up for automated car insurance renewal quotes. comparethemarket automatically notifies customers whose policy is about to end about any available deals and savings to be had.’