’Motorists of all ages have seen new business quotes soar,’ says insight manager
Car insurance premiums saw a record quarterly increase in Q3 2023 as telematics providers become less competitive in the market, according to figures released yesterday (10 October 2023).
The data, which was released by Consumer Intelligence, showed that the average quoted price to customers rose by 22% between May and August, the biggest rise since the firm began tracking in 2013.
The consumer insights firm also revealed that prices in the year to August increased by 61%, the highest annual increase on record.
The rise came as telematics providers were found to be becoming less popular, according to Consumer Intelligence, accounting for just 17% of the top five quotes in Q3 2023 compared with 21% in the previous quarter.
Telematics insurance allows a motorist’s driving to be monitored either through an app or device fitted to their car, which can in turn reduce premiums.
Consumer Intelligence said the reduction of such policies had hit younger drivers, with it accounting for just 41% of the most competitive quotes for under-25s compared with 53% three months ago.
And the firm also revealed that under-25s were seeing rises in quoted premiums of 66.7%.
“Competition from telematics has reduced for a second consecutive quarter,” Max Thompson, insurance insight manager at Consumer Intelligence, said.
“This drop-back in telematics delivering competitive quotes has likely triggered the sharper increases in competitive premiums seen this quarter, as telematics quotes are usually significantly cheaper than traditional quotes.”
Regions
The data, which was highlighted in Consumer Intellience’s car insurance price index, also showed that the average overall quoted premiums have more than doubled by 102.9% since October 2013.
Read: Increases in motor insurance premiums outstrip CPI inflation
Read: Car insurance premiums seeing ‘alarming acceleration’ – Consumer Intelligence
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Average quoted premiums have risen the most for drivers in London, the west midlands and the south east, with increases of 69.5%, 64.4% and 64.2% respectively.
Drivers in the north west, meanwhile, experienced the lowest rises in quoted premiums, although face rises of 55%.
“Motorists of all ages have seen new business quotes soar over the last year and many will likely be feeling the pinch in their household budgets against a backdrop of other rising costs of living,” Thompson added.
His career began in 2019, when he joined a local north London newspaper after graduating from the University of Sheffield with a first-class honours degree in journalism.
He took up the position of deputy news editor at Insurance Times in March 2023, before being promoted to his current role in May 2024.View full Profile
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