According to the latest figures released, the average price paid for motor insurance in the UK has reached unprecedented heights, marking a 12% increase compared to the previous quarter and 25% more expensive compared to last year.
The insights come from the Association of British Insurers’ (ABI) Motor Insurance Premium Tracker, which comprehensively analyses nearly 28 million policies sold annually in the UK.
Key findings from the fourth quarter of 2023 include:
- The average premium for private motor insurance surged to £627, marking a substantial 12% increase from the previous quarter’s £562.
Compared to Q4 2022, the current average premium is a staggering 34% higher, rising from £470 to £627. - On an annual basis, motor insurance premiums in 2023 were 25% higher than in 2022, with an average of £543 compared to £434.
Repair costs emerge as the primary driver behind the surge in claims expenses.
In addition to rising premiums, motorists also face the burden of Insurance Premium Tax (12%), contributing an average of £67 to their motor premiums.
Crackdown on Uninsured Driving
Amidst the surge in insurance premiums, authorities are intensifying efforts to combat uninsured driving, a significant road safety concern. Operation Drive Insured, an annual campaign aimed at tackling the prevalence of uninsured drivers, saw widespread participation from police forces across the UK. Roadside operations conducted during the campaign led to the seizure of thousands of vehicles and the identification of numerous stolen vehicles.
Uninsured drivers face severe consequences, including vehicle seizure, fines, points on their license, and potential court proceedings. The economic impact of uninsured driving extends beyond individual motorists, with an average of £53 being added to every annual motor premium to compensate victims.
While not all cases of uninsured driving are intentional, motorists are urged to ensure the validity of their insurance coverage to avoid inadvertent violations.
If you are unsure about your vehicles insurance status, you can check the Motor Insurance Database (MID) for free at www.mib.org.uk/driveinsured
