Q3 2022 most expensive quarter for motor premiums – Confused.com

Comprehensive car insurance premiums have increased by 14% (£72) since Q3 2021, with motorists now paying £586 on average, according to Confused.com’s latest Car Insurance Price Index, published today (20 October 2022) in association with Willis Towers Watson (WTW). 

The index highlighted that motor insurance premiums have risen for the past four consecutive quarters, with a 6% increase (£32) recorded just in the last three months.

Confused.com’s chief executive Louise O’Shea said the statistics showed that the last quarter has proved to be the “most expensive of 2022” – leading to the “biggest annual increase in five years”.

However, with the “cost of living crisis at the forefront of everyone’s minds right now, it’s no surprise that the cost of premiums are increasing”.

Tim Rourke, UK head of property and casualty pricing, product, claims and underwriting at WTW, meanwhile, said the increase in premium prices is a result of insurers finding it “increasingly challenging” to “absorb a bitter cocktail of rising cost pressures” this year.

This accumulation of challenges, according to Rourke, includes inflation, rising accident frequency due to a post-pandemic increase in road traffic, higher used car prices and a supply chain crisis resulting in more costly repairs.

Deal hunting

Regionally, all locations recorded a double-digit price increase in insurance premiums, with Northern Ireland seeing the biggest annual rise of 20% (£106) – insureds in Northern Ireland are now paying £631 on average.

In England, inner London saw insurance premiums increase by 16% (£132) – resulting in the area remaining the most expensive region with average premiums now costing £936.

West Central London is the most expensive postcode.

In terms of gender, male drivers aged between 21 and 25 saw increases of 18% (£190) during the last 12 months, boosting premiums up to £1,249.

Male drivers aged between 17 and 20 are paying the most, with an average car insurance premium now costing £1,673.

Female drivers aged between 66 and 70 are paying the lowest annual premium at £287.

O’Shea added: “This is a great opportunity for insurers to attract new customers as it’s likely that many will want to look for better deals in a time where money is tight.

“As an industry, it’s important that we come together and do what we can to further support our customers during this time.”