Car insurance increases for the first time in 18 months as drivers return

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Rivers already hit by soaring fuel prices are facing a double whammy of spending as car insurance increases for the first time in 18 months.

A survey by Confused.com and insurance company Willis Towers Watson of 2,000 motorists found that insuring a vehicle now costs £12 more than it did a year ago.

Two in five (42%) of those who received their renewals in the last quarter saw their price go up year on year, rising by £39 on average.

The situation is similar for home insurance customers, with just over 2 in 5 (41%) of those who received their renewals in the last quarter experiencing a price increase. Policies increased by £3 on average.

“Car insurance costs are starting to rise, and that’s mainly because we’re driving a lot more now than 12 months ago, and that means the number of claims insurers are paying out has probably gone up, too.” , said the general manager of Confused, Louise O’Shea.

The most expensive areas to get car insurance were Central London (£864), Manchester (£697), Outer London (£687), West Midlands (£657) and Leeds (£627). The Scottish Borders is the cheapest region for car insurance, with an average cost of £370.

Changes to motor insurance were introduced by the Financial Conduct Authority (FCA) in January, which prevented insurers from pricing new customers and renewals differently.

Under the new regulations, insurers must offer drivers the same price they would receive as a new customer buying in the same way, banning what was previously known as the new customer discount.

As a result of these changes, one in five drivers (19%) who received their renewal in the last three months mistakenly believed that their renewal would not increase. Another in five (21%) expect their renewal price to be cheaper, according to the survey.


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Justin D. O'Neill