Quoted motor insurance premiums in the UK have skyrocketed, with a record 61% increase in the year to August 2023, according to the latest Consumer Intelligence Car Insurance Price Index.
The index also revealed that the average quoted car insurance premiums saw a record 22% increase in the three months to August 2023, the biggest quarterly increase since the index started tracking in October 2013.
Among providers, telematics providers became less competitive this quarter, accounting for only 17% of the top five quotes compared to 21% three months ago.
For the August 2023 quarter, telematics providers accounted for 41% of the most competitive quotes for people aged under 25 (compared to 53% in the previous quarter). People aged under 25 also saw a 66.7% rise in quoted premiums.
In the past 12 months, people aged over 50 saw the smallest increase in quoted premiums, at 56.3% compared with 61% for those aged 25 to 49 and 66.7% for those aged under 25.
“Motorists of all ages have seen new business quotes soar over the last year, and many will likely be feeling the pinch in their household budgets against a backdrop of other rising costs of living,” said Max Thompson, insurance insight manager at Consumer Intelligence.
In the past 12 months, average quoted premiums skyrocketed the most in London, the West Midlands, and the South East with increases of 69.5%, 64.4%, and 64.2%, respectively.
By contrast, drivers in the North West experienced the lowest rises in quoted premiums, but still faced a 55% rise.
