UK car insurance premiums highest since 2020 in first quarter

© . FILE PHOTO: Vehicles in traffic approach the Blackwall Tunnel, in London, UK, Nov. 18, 2020. REUTERS/Simon Dawson () – The cost of comprehensive motor insurance in Britain peaked in the first quarter in 18 months and will continue to rise on the back of rising inflation and regulatory changes, a survey found Thursday. UK motorists now have to pay about £550 ($718.08) for a comprehensive auto insurance premium, according to the latest index from price comparison site Confused.com in partnership with insurance broker Willis Towers Watson (NASDAQ: ). Motor insurance premiums had fallen for a year until the autumn of 2021 as lockdowns kept motorists off the road and competition in the UK motor insurance sector increased. “As people return to more normal work and life patterns, we’re seeing those premium cuts gradually ease,” said Tim Rourke, UK Head of P&C Pricing, Product, Claims and Underwriting at WTW. Rourke also expects premiums to continue rising through 2022, as Britain faces high inflation and insurers face new rules from the Financial Conduct Authority that will ensure consumers who renew their policies will not be charged. than new customers. Britain’s annual inflation rate climbed to 7% in March, the highest level since 1992. “Prices could continue to rise simply because insurers are likely to see more claims than last year as people start driving more often, and this just means insurers need to be as competitive as possible,” said Louise O’Shea, CEO of Confused.com. “And in turn, consumers will have to keep looking around, as the assumption that renewal prices won’t rise is clearly not true.” Eighteen-year-old drivers still pay the most of all demographics, bringing their average premium to £1,419, the survey finds. ($1 = 0.7659 pounds)

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