Motor Insurance Prices Continue To Climb

Motor Insurance prices have continued to increase this quarter, with middle of the market ages seeing the greatest rise, according to our latest price index.

This research was created with a sample of 3,600 people each month over the last 12 months. In that time the top five motor insurance premiums across price comparison websites and direct insurance brands have gone up by 15.4% on average. The 25-49 age group has seen the biggest hit, with an increase of 16.5%.

Those between the ages of 25 and 49 have seen the steepest increases

This year to date, overall the motor insurance market has seen a price increase of 3.4%. Again, those between the ages of 25 and 49 have seen the steepest incline, with a rise of 4% this year alone, whereas those under 25 have seen the least change – experiencing a continual steady growth of only 2%.

As an indicator of roughly what consumers can expect to pay, we can suggest the following figures as the five cheapest premiums of February this year. Please note that these should be used as an approximate guideline: if you need or would like more specific data, we strongly recommend that you peruse our pricing index.

Overall, the cheapest average premium for motor insurance this year was £671, with over 50’s receiving the lowest price at £306, and under 25s the highest at £1,518. Closest to the average of each month is the 25 to 49 age bracket, generating a cheapest average premium of £597.

The rate of continuous growth might not continue

Overall, what we are observing at this juncture is a levelling out of motor insurance price increases. Whilst the figures do continue to rise, they are doing so at a much more gradual and steady rate than they were last year. With this in mind, insurers should be warned that continuous growth might not continue in the way in which it has been expected to do, at least not at the rate that it has previously grown.

[1] This data was collected in 2016 with our price index with a sample of 3,600 people each month over the last 12 months.

Car insurance price index. 

Reliable insight that will enable you to optimise your pricing strategy. The data is used by the Office for National Statistics, regulators and insurance providers as the definitive benchmark of how price is changing for consumers.