• Record number of brands are now quoting across the price comparison market  
  • The proportion of telematics quotes in the five cheapest has hit a new high of 32% 

The average cost of the most competitive motor insurance deals has increased 17.4% in the past year adding to the cost-of-living pressure in the UK, the latest motor insurance price index published by Consumer Intelligence shows1

Price rises in car insurance are outstripping inflation for the economy as a whole at 10.7% with average premiums now costing £877.  

“The surge has been expected this year following the ban on price walking. We have not found it surprising that prices have increased as a result,” says Senior Insight Analyst Georgia Day. 

“What is surprising however is the number of product launches we are seeing, especially the growing number of essentials products. To highlight this, the number of total brands quoting across the PCW market reached its highest point since our tracking began in 2014,” she adds. 

Premium rises for the over-50s are running at 21% - more than double the rate for the under-25s at 9.1% with motorists in Wales facing the biggest increases at 24.5%. 

Prices have increased just 0.1% for the under-25s in the past three months which saw premiums for the market as a whole rise 3.4%. 

Telematics quotes are playing a more prominent role in the most competitive deals – the data shows they make up 32% of the best deals which is the highest level since Consumer Intelligence first started tracking it in 2014. 

Long-term view  

Average overall premiums have increased 32.3% since October 2013 when Consumer Intelligence first started collecting data. 

However, premiums are down 24.7% over the period for the under-25s while they have increased 67.7% for the over-50s and 44.2% for those aged between 25 and 50. 

Age differences in the past year 

Older drivers continue to bear the brunt of price rises with premiums up 21% in the past year, but they pay the lowest premiums of all age groups at £449.  

Motorists aged 25-50 are not far behind in terms of price rises over the same 12-month period at 19.1% but the annual cost of their car insurance is higher at £645. 

The under-25s – who are statistically more likely to have an accident – have only seen prices increase 9.1% in the past year but pay £1,813 for car insurance. 

Telematics  

The number of telematics products that make up the five cheapest insurance quotes for a typical motorist has increased to a new high of 32% beating the previous record of 30% in January 2022. 

Telematics policies base your premiums on how you drive, with insurance becoming cheaper for safer drivers.  

The under-25s are most likely to benefit – 67% of the five cheapest insurance quotes for them are telematics compared with 24% for the 25 to 50 age group and just 13% for the over-50s. 

Regional differences 

Welsh drivers have seen the biggest increases to their car insurance in the last 12 months at 24.5%, but all regions have seen double-digit increases with the exception of the North East which was just short of double digits at 9.9% 

Londoners pay the most for motor insurance at £1,346 followed by the North West at £1,256. The cheapest region for motor insurance is the East Midlands at £463. 

Consumer Intelligence Car Consumer Intelligence Car Insurance Index - Overall 

Date range 

Overall 

Age <25 

25<=Age<50 

Age >=50 

All months 

Oct 2013 to Nov 2022 

32.2% 

-24.7% 

44.2% 

67.7% 

Last year 

Nov 2021 to Nov 2022 

17.4% 

9.1% 

19.1% 

21% 

Last six months 

May 2022 to Nov 2022 

9.9% 

6.7% 

11% 

10.6% 

Last three months 

Aug 2022 to Nov 22 

3.4% 

0.1% 

4.2% 

4.8% 

Year to date 

Dec 2021 to Nov 2022 

18.4% 

11.9% 

19.6% 

21.4% 

Age group as proportion of batch (Nov 22) 

 

100% 

24% 

52% 

25% 


Region 

Price Index 
Last Year 
(Nov21 - Nov22) 

Price Index 
Last 3 months 
(Aug22 - Nov22) 

Nov 2022 
Average Premium 
(5 cheapest) 

Wales 

24.5% 

4.6% 

£535 

South West 

21.1% 

6.5% 

£572 

South East 

20.7% 

3.2% 

£774 

London 

19.3% 

3.8% 

£1,346 

Scotland 

19.1% 

2.5% 

£672 

East Midlands 

18.7% 

4.7% 

£463 

West Midlands 

16.1% 

3.8% 

£992 

Yorkshire & The Humber 

15.5% 

4.3% 

£655 

Eastern 

14.4% 

2.6% 

£844 

North West 

14.0% 

2.1% 

£1,256 

North East 

9.9% 

-1.9% 

£994 

1The cheapest premiums were calculated by comparing the prices offered for 3,600 people by all the major Price Comparison Sites and key direct insurers. The top 5 prices for each person were compared to the previous month’s top 5, then these variations averaged to produce the index. This data was collected in 2022


Car insurance price index. 

The independent authoritative source of price movements in the car insurance market, using real customer quotes from PCWs and key direct brands.

Access our latest motor index


 

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