A 3rd of British drivers are fearful that prime automobile insurance coverage premiums may pressure them off the street, in response to new analysis.
Many money strapped motorists have been feeling the pinch following a dramatic surge in insurance coverage prices over current years, with quoted costs skyrocketing by 82% between Could 2021 and June 2024.
Whereas the newest figures present that costs have began to drop slowly, the price of insuring a automobile in nonetheless considerably dearer than it was simply three years in the past. In 2022, the common UK premium was simply £561, in contrast with £769 on the finish of final yr.
A brand new survey from the automobile insurance coverage specialists at Tiger.co.uk has discovered {that a} vital variety of motorists are struggling to afford insurance coverage, with 33% saying they’d rethink driving altogether.
The ballot additionally discovered that over two-thirds (69%) of motorists have been compelled to vary their driving habits to maintain up with insurance coverage prices – with some decreasing their mileage, sharing one automobile for the entire household and utilizing their automobiles completely for social journeys quite than commuting.
The continued excessive value of automobile insurance coverage throughout the UK is being pushed partially by document claims prices. The newest figures from the Affiliation of British Insurers (ABI) present insurers paid out an unprecedented £11.7bn in automobile insurance coverage claims in 2024, as will increase in theft and restore prices continued to impression premiums.
Ian Wilson, automobile insurance coverage skilled and Managing Director at Tiger.co.uk mentioned: “Motorists have been hammered by the accelerating value of automobile insurance coverage over current years, leaving many individuals with no selection however to surrender on driving utterly, as they’re being priced out of the market.
“Whereas the common value of automobile insurance coverage within the UK has began to lower barely – a development which is able to hopefully proceed all through 2025 – the fact is that premiums at present stay considerably increased than they have been only a few quick years in the past. When coupled with the hovering prices of working a automobile comparable to street tax, repairs and servicing, many drivers are being stretched to the restrict financially.
“Fortunately, our newest survey outcomes point out that drivers are more and more shrewd relating to discovering financial savings on their insurance coverage, with 80% of respondents saying they store round utilizing a value comparability web site.
“Impressively, over three quarters (77%) of individuals additionally mentioned they don’t let their insurance policies routinely renew, which is without doubt one of the greatest methods to search out huge financial savings in your annual premium. An extra 70% mentioned they change suppliers annually in the hunt for a greater value – one other very helpful cash saving hack.
“Extra financial savings could be made by enhancing the safety of the automobile by including a tracker, sprint cam or immobiliser, or by parking the automobile within the storage or driveway in a single day.
“By following the following pointers, drivers can begin to discover some actual financial savings that can assist make the price of automobile insurance coverage extra manageable.”
