New index shows record rise in quoted car insurance premiums

Biggest leap recorded in London
New index shows record rise in quoted car insurance premiums
MOTOR & FLEET
By Terry Gangcuangco
17 Jan 2024

The latest car insurance price index by Consumer Intelligence points to the highest annual increase on record.

In a release, Consumer Intelligence said the average quoted motor insurance premium in the year to November went up by 67.2%. The biggest leap was recorded in London.

Region

Change from Nov 2022 to Nov 2023

London

+76.9%

North West

+63.1%

West Midlands

+69.4%

North East

+65.4%

South East

+71.3%

Eastern

+68.1%

Yorkshire & The Humber

+65.0%

Scotland

+69.4%

South West

+57.2%

East Midlands

+65.3%

Wales

+62.1%


Prior to the 67.2% rise, the previous record stood at 61%. The latter statistic was for the year to August 2023. On a quarterly basis, meanwhile, the climb in premiums was less steep – at 10.6% in the three months to November, compared to 22% in the three months to August.

Max Thompson, insurance insight manager at Consumer Intelligence, commented: “Record payouts for claims are having an impact on quoted premiums, and there is evidence that in certain areas, such as Scotland and the East Midlands, recent storms have had an impact on premiums.

“During the last quarter, small increases in telematics competitiveness were observed across all the age groups, of 1% to 2%. However, motorists across all age groups and all over the country are seeing major increases in quoted premiums.”

According to Consumer Intelligence data for November, 21% of quotes fell within the £500 to £749 price range. 

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