Motor insurance prices surge 67%

15th January 2024

The average quoted price of motor insurance rose 67% in the year to November, according to data from the Consumer Intelligence Car Insurance Price Index.

This represents the sharpest annual price rise on record, beating the 61% rise in the year to August.

Younger drivers have experienced the biggest rises in quoted premiums of 73.1% compared with 57.2% for the over-50s and 63.9% for motorists aged between 25 and 49.

This comes after insurers paid out a record £2.5bn in the third quarter of the year following a series of storms in the UK.

Max Thompson, insurance insight manager, said: “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 one to two per cent. However, motorists across all age groups and all over the country are seeing major increases in quoted premiums.”