Drivers are facing a triple whammy of cost increases after research reveals insurance premiums have risen to add to increases in fuel and road tax
Motorists have been hit with higher insurance costs, just after prices fell to a welcome three-year low.
Research by price comparison website Moneysupermarket suggests the Middle East conflict is one reason why premiums are creeping up again.
Data from car insurance premiums bought through the site in the past three months reveals that the annual average was £751.25 in April, up 3% from £729.23 in February, before the Iran war erupted.
The increase is a blow to drivers given the conflict has already sent fuel prices spiralling, while car tax also increased in April.
Data published by fellow comparison site Confused.com in late March showed that, in fact, car insurance prices had dropped to the lowest level in almost three years, with drivers now paying £711 on average. That was a £66 decrease over the past 12 months.
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Kara Gammell, car insurance expert at Moneysupermarket, explained: “Global events, such as the current conflict in the Middle East, can have an impact on costs for consumers here in the UK, particularly when supply chains are disrupted, and businesses face higher costs, such as those associated with fuel and shipping.
“Motorists in the UK have already experienced rising fuel prices in recent months, and continued pressure on vehicle repair and replacement costs are likely to now be influencing car insurance premiums too.
“When vehicle parts become more expensive, or take longer to source, repair costs can also increase. Insurers take these costs into account when they set their premiums, meaning some of these costs may then be passed on to drivers.”
She added: “Drivers who are due to renew their car insurance policies in the coming weeks and months may see increased premiums, so it’s more important than ever to shop around. Taking a few minutes to compare quotes can help you find the best deal for you, rather than leaving it until the last minute.”
Moneysupermarket’s tips to help keep car insurance costs down include:
- Avoid auto-renewing without checking – renewal prices offered by your current insurer aren’t always the cheapest, and prices vary between insurers, so it’s always worth shopping around to see if you can find a better deal.
- Renew early – the best time to renew is generally 21 to 28 days before your policy expires.
- Pay annually if possible – paying for your policy in one go can often be cheaper than spreading the cost monthly, so it’s worth paying annually if you can
- Add a named driver to your policy – adding a named driver to your policy can help to reduce costs, particularly if they’re more experienced.
