Average price paid for motor insurance ‘has jumped by 16 per cent in a year’

Rising costs are becoming increasingly challenging for insurers to absorb, the Association of British Insurers said.

Motorists typically paid £478 for private comprehensive cover in the first three months of 2023, according to the Association of British Insurers (Ben Birchall/PA) (PA Archive)

The average price paid for motor insurance jumped by 16% annually in the first quarter of this year, as rising costs have become increasingly challenging for insurers to absorb, according to the Association of British Insurers (ABI).

Motorists typically paid £478 for private comprehensive cover in the first three months of 2023, which was a 2% increase compared with the previous quarter and the highest figure recorded since premiums cost £483 on average in the final quarter of 2019.

The ABI said insurers have been facing above-inflation cost increases, but they are doing all they can to offer competitive deals.