The following table displays the expected costs for drivers based on their UK residence.
In what ways has the price of auto insurance evolved throughout time?
By the third quarter of 2021, the average yearly premium for auto insurance dropped to £429, according to the Association of British Insurers. This resulted from insurers passing along cost savings from settling fewer claims when the country was under lockdown. Additionally, because of restrictions on lockdown driving tests, there were fewer young drivers on the road during this time.
In the last quarter of 2021, policyholders incurred an average of £434 in premiums due to insurers transferring progressively rising repair expenses to them. Following the introduction of new restrictions by the Financial Conduct Authority (FCA), the industry regulator, which prohibited auto insurers from charging new clients more rates than they would have for renewals, they dropped to £416 in the first three months of 2022.
Costs increased once more by the second quarter of 2022 as traffic on the roads began to revert to pre-lockdown levels. They had risen to an average of £478 annually by the first quarter of this year, and by the third, they had hit a record of £561.
In comparison to the preceding three months (£562), average prices increased 12% to £627 in the last three months of 2023.
Compared to the rise over the same two quarters in 2023, this is 34% higher. Additionally, comparing annual averages, vehicle insurance costs increased by 25% between 2022 and 2023 (£543 versus £434).