Motor premiums up 34% in a year

New data has revealed that the average quoted price of car insurance rose by 34% in the year to May.

This is according to the latest Consumer Intelligence Car Insurance Price Index.

However, the trend could be working the other way. The three months to May saw average quoted premiums fall by 1.3%. This was the first quarterly drop since the last three months of 2021 and follows a 0.5% increase in the previous quarter, which was the lowest rise since November 2021.

That data showed that in May drivers most commonly received a quote between £500 and £749, with 21% of quotes falling in this price range. Around 58% of quotes were below £1,000.

Max Thompson, Insurance Insight Manager at Consumer Intelligence, said, “The escalation of car insurance premiums may finally be at an end, with insurers now reducing premiums and jostling to get to the top of screen on the price comparison website results pages.

“Insurers are making their pricing efforts more visible to consumers. There are now more price cut offers visible on quotes than messages relating to cover benefits, which is the first time this has been the case since July 2022.” 

Average overall quoted premiums have risen 122.7% since October 2013 when Consumer Intelligence first started collecting data.