Auto insurance bills skyrocket 20 percent in 2 years – as whiplash claims and tax hikes cause prices to soar


CAR insurance bills have soared by nearly 20 percent in only two years – as tax hikes, whiplash claims and higher repairs drive prices up.

The average price of cover has become lb562 compared to lb474 in 2021, understands yesterday show.

MoneySuperMarket looked at 27 million auto insurance quotes from January 2021 to June 2021 to recognize year-on-year price changes.

The analysis reveals car premiums reached lb562 on average between April and June this season, an increase of lb88 compared to the same period in 2021 or more lb51 compared to 2021.

Drivers with five or more years' no-claims discount paid just lb347 on average between April and June, while those with no no-claims bonus faced costs of lb1,271 typically.

Men paid lb85 more than female drivers for their auto insurance – on average the cost of cover was lb600 for men between April and June, while women paid lb515, some 14 per cent less.

However, there was what's promising for younger, less experienced drivers who typically face higher premiums.

While the price of cover for drivers aged 17 to 19 year olds is more epensive than every other age group, premiums fell by lb13 on average from this past year (lb1,334 compared to lb1,322 in 2021).

But younger drivers continue to be paying lb760 a lot more than the nation's average.

Rob Cummings, from the Association of British Insurers said: “Drivers are bearing the brunt of a cocktail of rising costs associated with increasing whiplash-style claims, rising repair bills and a higher rate of insurance premium tax.”

Kevin Pratt, a consumer affairs expert at MoneySuperMarket, said: “These are grim times for motorists as far as their insurance coverage is concerned.

"Insurance premium tax rose again in June and now stands in a hefty 12 per cent of premiums.

“And the change towards the Ogden discount rate for personal injury claims captured has put into the inflationary pressure.

“It is to be hoped the Chancellor resists the temptation to push insurance premium tax higher within the autumn, but nobody could be surprised if he did.

“Likewise, we need to begin to see the government come good on its promise to overhaul the way the courts cope with fraudulent whiplash claims – and it needs to keep its foot around the neck of insurance providers so that any savings that accrue are forwarded to policyholders.

“Anyone renewing their policy within the next couple weeks should be aware of how premiums have risen during the last couple of years, and should shop around to determine what else can be obtained.

It only takes 10 minutes and you can spend less than lb275.”

Regionally, the figures demonstrated that drivers in east London face the highest premiums, at lb1,166 on average, accompanied by west manchester (lb1,027), north west London (lb1,003) and Ilford and Barking (lb979).

Outside from the capital, the greatest premiums have been in Manchester (lb859), Oldham (lb847) and Bradford (lb841).

Those around the Isle of Lewis (HS) in Scotland's Outer Hebrides are presently enjoying the cheapest premiums (lb302), accompanied by Kirkwall in the Orkney Islands (lb318), the Shetland Islands (lb318), Inverness (lb329) and Perth (lb336).