The cost of car insurance goes up: how to obtain the best renewal offer

The cost of car insurance goes up: how to obtain the best renewal offer

The most recent report from the Association of British Insurers (ABI) indicates that in the second quarter of 2022, premiums for automobile insurance saw a slight increase.

However, prices have not increased significantly compared to this time last year.

We provide insight into how the cost of auto insurance has changed and how to get the best deal when renewing.

Vehicle insurance payments ascend by £5
The most recent figures from the ABI show vehicle insurance payments arrived at the midpoint of £419 between April and June this year.

Costs expanded by 1.3% (£5) contrasted with the primary quarter of the year, yet were 2.6% (£11) lower than the year before.

Normal charges for new strategies rose by 3% to hit £500, while recharges expanded by 0.5% to reach £371.

Has the loyalty penalty ban affected premiums?

The Financial Conduct Authority (FCA) outlawed insurers from charging more to current customers than to new ones in January.

The change was intended to make protection estimating more pleasant for faithful clients, yet it likewise implied that drivers who change their backup plans consistently to get a less expensive arrangement could confront greater expenses.

The ABI says it is still too soon to survey the full effect of the boycott, however, the decreased hole in costs between new strategies and recharges recommends a few drivers are getting a more ideal arrangement from their safety net provider.

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Why are the ABI’s numbers different from those of comparison sites?

Sometimes, the figures provided by price comparison websites in their regular reports contradict the data provided by the ABI.

This is due to the fact that the methodologies utilized can provide varying perceptions of the insurance cost.

The ABI’s report examines the average renewal and comparison pricing for all drivers. Overall, it found that drivers are paying slightly less than they did in the same period last year.

However, only the prices offered to drivers who shop around are included in the statistics that comparison websites publish.’s latest report shows charges cited through its site rose by a normal of £32 year-on-year in the second quarter of 2022.’s index probably shows more clearly how drivers who want to switch have been affected by removing discounts for new customers.

When comparing this year’s prices to those of last year, the two sets of analysis both demonstrate that premiums are currently rising, despite not exactly aligning.

Why are automobile insurance rates rising?
Premiums are beginning to reflect the rising costs incurred by insurers.

Admiral stated in its annual report that the increased costs of claims led to a 16 percent increase in premiums between March and the end of July.

Additionally, Sabre and Direct Line confirmed raising their prices in the first half of this year.

According to the ABI, insurers face a number of challenges, including the following:

a global shortage of semiconductors that has been made worse by the pandemic and the war in Ukraine. The average price of a used car has gone up by 30% in the last year. More expensive repairs, as well as an increase in the cost of raw materials and delays in getting spare parts, are making it harder to get spare parts. There is also a lack of skilled labor in the vehicle repair industry.

Is it still beneficial to shop around for auto insurance?

It is still essential to conduct research and shop around if your policy is about to expire.

Although your insurer may offer you a better deal than before the loyalty penalty ban, this does not guarantee that it will be the cheapest overall.

Although the figures above provide a general idea of the state of premiums, they may or may not be included in your renewal estimate.

Pricing for auto insurance is determined by a variety of factors, including your own circumstances (such as your driving record, location, and employment), insurer costs, and the state of the economy as a whole. As a result, it can be challenging to precisely explain why your quote may have changed slightly.

Learn more here: the most effective method to restore your vehicle protection

Five tips on getting a good insurance deal

1. Don’t auto-reestablish
Your backup plan ought to send you a reestablishment quote something like a month prior to the end date of your strategy.

Assuming you sit idle, the strategy will generally auto-recharge at the value that has been cited, regardless of whether you need it to.

It is essential to contact your current provider to cancel the auto-renewal if you discover a better deal elsewhere.

2. Think about bargains
Cost examination sites are a decent spot to begin while estimating up vehicle protection.

These locales can give a sign of which guarantors will offer the least expensive charges and assist you with contrasting the degrees of cover on offer.

Remember to get statements from safety net providers that don’t show up on correlation destinations, like Direct Line and NFU Common.

3. Choose the appropriate excess Insurance policies including both a mandatory and a voluntary excess. If you file a claim, you will be responsible for paying the total amount.

Obligatory abundances are set by the backup plan, however, you can set your own deliberate overabundance, with choices, for example, £100, £250, and £500 regularly accessible.

A higher overabundance can reduce the expense of your premium, however setting it too high can be an obstruction to making a case.

4. Avoid paying for unnecessary add-ons. Insurance companies provide a wide range of add-ons, including personal accident cover, breakdown cover, key cover, and legal expenses cover.

Prior to marking the crates, consider whether you want these types of assurance.

Check to see if you are already covered elsewhere—for instance, some bank accounts include breakdown coverage, and your home insurance policy may include a key cover.

5. It’s not just about price when looking for the best insurance deal. You’ll need to guarantee you’re picking a supplier that consolidates a thorough and great worth strategy with extraordinary help, would it be a good idea for you want to guarantee?

Check out our 2022 car insurance reviews to see which companies performed well in terms of policy coverage and customer service.