UK car insurance premiums in first quarter hit highest level since 2020 – survey

Vehicles sitting in traffic approach the Blackwall Tunnel, in London, Britain November 18, 2020. REUTERS/Simon Dawson

April 21 (Reuters) – The cost of a comprehensive car insurance policy in Britain hit its highest level in 18 months in the first quarter and will continue to rise due to rising inflation and changes regulations, an investigation revealed on Thursday.

UK motorists now have to pay around 550 pounds ($718.08) for a full car insurance premium, according to the latest index from price comparison site Confused.com in association with insurance broker Willis Towers Watson.

Car insurance premiums had been falling for a year until the autumn of 2021 as shutdowns kept motorists out and competition in Britain’s car insurance industry intensified.

“As people return to more normal working and living habits, we are seeing these premium reductions gradually dissipate,” said Tim Rourke, UK head of pricing, product, claims and underwriting at WTW. .

Rourke also expects premiums to continue rising through 2022 as Britain battles high inflation and insurers face new rules from the Financial Conduct Authority that ensure consumers who renewing their policies are not charged more than new customers. Read more

Britain’s annual inflation rate soared to 7% in March, its highest level since 1992. read more

“Prices could continue to rise simply because insurers are likely to face more claims than last year as people start driving more frequently, and that just means insurers will have to be as competitive as possible. “said Louise O’Shea, CEO. on Confused.com.

“And in turn, consumers will have to keep shopping, because the assumption that renewal prices won’t rise clearly isn’t true.”

18-year-old drivers continue to pay the most of all demographic groups, taking their average premiums to 1,419 pounds, according to the survey.

($1 = 0.7659 pounds)

Reporting by Sinchita Mitra in Bengaluru; Editing by Devika Syamnath

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