Rising paint costs and better vitality prices have been among the many causes for a leap in the price of motor insurance coverage late final 12 months, a commerce physique has mentioned.
The common value paid for canopy rose by 8% within the closing three months of the 12 months, in contrast with the earlier quarter, the Affiliation of British Insurers (ABI) mentioned.
The standard premium of £470 was up 7% on the final three months of 2021.
Restore and courtesy automobile prices have been elements within the enhance, the ABI mentioned.
The rise in the price of paint and the soar in vitality costs have been among the many elements that made automobile repairs value extra, the commerce physique mentioned.
Jonathan Fong, senior coverage adviser of normal insurance coverage on the ABI, mentioned: “Each motorist needs the very best insurance coverage deal, particularly when dealing with cost-of-living pressures, and insurers proceed to do all they’ll to maintain motor insurance coverage as competitively priced as attainable.
“But, like many different sectors, insurers proceed to face larger prices, akin to dearer uncooked supplies, which have gotten more and more difficult to soak up.
“Anybody involved about having the ability to proceed paying their motor insurance coverage premium ought to communicate to their insurer about any various cost choices which may be accessible.”
The worth paid for renewing an current motor insurance coverage coverage was sometimes £428, the ABI mentioned, whereas the common value paid for a brand new deal was a file excessive of £531.
Guidelines launched by the Metropolis regulator, the Monetary Conduct Authority, in January are designed to make sure people who find themselves loyal to the identical insurer aren’t penalised for doing so.
The principles state that the worth paid by renewing clients for motor and residential insurance coverage is not any better than the worth charged to an equal new buyer for the equal coverage purchased by means of the identical distribution channel, akin to through an insurer, dealer or value comparability web site.