Households are paying £88 more for car and home insurance compared to a year ago, according to new research.
Analysis from Compare the Market shows the typical cost of car insurance is £613 – this is up by £81 based on what drivers paid in 2022.
The average cost of home insurance is currently £159 – up £7, or a 5% rise, on a yearly basis.
The rising cost of insurance adds further strain to household budgets, after “Awful April” saw other bills such as council tax and water rise.
In addition, broadband, TV, and mobile phone bills are increasing this month, while the £400 energy rebate has now come to an end.
The average energy bill now stands at £2,500 due to the Government’s Energy Price Guarantee.
Mortgage costs for homeowners on variable deals are also rising, due to the Bank of England base rate being hiked from 0.1% to 4.25% over the course of 16 months.
Compare the Market research shows household bills have surged by up to £747 in the past 12 months.
It means families now typically need to pay a hefty £5,785 each year for their regular bills – an increase from £5,038 last year.
As a result, 58% of households have cut back spending on clothes and 54% are spending less on food in the past six months.
More than six in 10 (64%) have been able to save up to £150 in the past six months.
However, only 21% of households have shopped around to save money on car insurance and 16% on home insurance.
Hélène Barnes, cost of living expert at Compare the Market, said: “Millions of households will be worried about shocking increases in recent bills, with many seeing the cost of their energy bills and car insurance increasing faster than inflation.
“This will put further pressure on households that are already struggling with the rising cost of food and housing.
“During this difficult time, people must take the time to look for savings, so they don’t pay more than they need to.
“Most households could save a significant amount of money by shopping around for cheaper deals on their bills, such as car and home insurance, broadband, and credit cards.
“Comparing prices online is one of the best ways to check you’re getting the savings you deserve.”
How to cut the cost of insurance
Home insurance covers you if something bad happens, such as a fire, burglary or storm damage.
But what exactly you’re covered against depends on the type of policy you take out.
The three main types are: buildings insurance, contents insurance and combined buildings and contents insurance.
MoneySavingExpert says 21 days before your home insurance is due to expire is the prime time to find the cheapest deals.
Car insurance is a legal requirement in the UK and has to be renewed yearly.
The three main types are: third party, third party, fire and theft and fully comprehensive.
MSE says the best time to start looking for car insurance is 23 days before your current policy expires.
You should also see if you'd be eligible for cashback on your insurance policies on sites such as Topcashback and Quidco.
