Have you noticed the price of your car insurance skyrocketing this year? According to The Independent, car insurance prices have risen by almost 50% in the last year, becoming one of the most expensive household bills. In fact, car insurance premiums are now at their highest rates since 2018.
Why is car insurance more expensive?
The Financial Conduct Authority (FCA) points the finger at the increasing cost of repairs as the main reason for this surge in motor insurance prices. The cost of vehicle repairs rose by 40% from 2018 to 2022, with the biggest rise of 37% happening between July and December 2022.
Rising repair costs are linked to Covid-19, soaring energy prices, and supply chain disruption. The Association of British Insurers also added that increasing courtesy car costs and inflation pushing up the cost of personal injury claims has contributed to the increase in policy prices.
New Rules for New Customers
Alongside the elevated cost of vehicle repairs and insurance claims, new rules introduced to the car insurance industry in 2022 have added a further twist. Under the new rules, insurers must not charge more to existing customers than new customers.
These changes protect renewing customers from huge price increases; however, it now means that savvy shoppers can no longer take advantage of lower introductory prices. This change to introductory car insurance premiums has hit those aged 25 to 39 and 65 and over the hardest.
Finding the right car insurance policy
Even amid all this change, it is still possible to get a fair price for your car insurance renewal The key? Shopping around and comparing quotes from different insurers. As independent insurance brokers, The Bateman Group has access to the whole market, so we can find deals that aren’t on regular comparison sites. And don’t forget, it’s not just about the price tag; make sure the policy actually fits your needs too.
So, next time you’re faced with rising car insurance rates, remember that shopping smart and using a broker can help you get the best prices.
