New analysis has discovered that the average cost of a motor insuranc e premium has increased by 7.8 per cent over the first five months of 2022, to reach £786. Consumer Intelligence, which published the research, said signs of inflation are starting to take hold, with upwards pressure on insurance prices coming from claims costs and repairs.
Drivers in Scotland recorded the biggest typical increases to their car insurance in the 12 months to May, with notable rises also seen in the South West of England and in Wales. Mike Miskelly, insights manager at Consumer Intelligence, said: "It was only a matter of time until we saw this come through at a market level."
New rules came into force at the start of the year which mean that the premiums charged to people renewing their motor or home insurance cannot be more than the price a new customer would be charged for the equivalent policy. This was to stamp out ‘price walking’, whereby existing customers could end up paying more for sticking with the same provider year in, year out.
