Car insurance costs in the UK saw a modest 1% increase during the initial quarter of the year, as per a recent survey, indicating a slowdown in the rate of premium escalation witnessed in the previous year.
Data from the Association of British Insurers‘ (ABI) Motor Insurance Tracker unveiled that insurers persisted in shouldering escalating expenses, with the average claim payout witnessing an 8% surge, reaching a pinnacle of £4,800 ($6,004.80) in the first quarter compared to the corresponding period last year.
“We understand that car insurance costs are putting pressure on household finances.
“These figures show how competitive the motor market is, with insurers absorbing significant cost rises but keeping prices relatively stable,” remarked Mervyn Skeet, ABI’s director of general insurance policy, in a statement.
In 2023, motor premiums in Britain skyrocketed by 23% in comparison to the preceding year, signaling a significant spike in insurance expenses for motorists.
The ABI tracker meticulously scrutinizes nearly 28 million policies sold annually along with the corresponding claims settled against these policies.