UK motor premiums rise for fourth quarter in a row
Comprehensive motor insurance premiums in the UK have increased sharply by 14% since the third quarter of 2021, according to the latest Confused.com Car Insurance Price Index in association with WTW.
Car insurance premiums have seen consecutive annual increases for the last three quarters, following the implementation of the new FCA pricing rules on 1 January 2022. Motor insurance premiums have now also risen for four quarters in a row, with a significant rise of 6% recorded in just the last three months.
Tim Rourke, UK Head of P&C Pricing, Product, Claims and Underwriting at WTW, said: “Car insurance prices have risen across the board as insurers have found it increasingly challenging through 2022 to absorb a bitter cocktail of rising cost pressures. Soaring inflation, rising accident frequency due to a post-pandemic increase in road traffic, higher used car prices, and a supply chain crisis resulting in more costly repairs have caused the biggest annual jump in premiums for five years.”
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