As the average cost of all goods increase due to inflation, motor insurance is likely to be added to the already overwhelmingly long list in 2022.
The cost of insurance in regions of the UK
So far, the average cost of motor insurance premiums has increased by 7.8% in the first 5 months of 2022, according to the Belfast Telegraph. In the North West, the average cost for an annual car insurance (between the time period in the 12 months to May 2022) was £858, according to Consumer Intelligence. Meanwhile, Londoners have experienced the smallest percentage of increase, however, are still paying the highest annual premiums out of all regions at £1296 on average.
On the other hand, the average premiums have increased significantly for drivers who are 50 and over. Consumer Intelligence has determined that the average premiums for this group have increased to a whopping 9.4% over the past year. This has taken the average annual premium for over-50s to £414. On the other hand, the polarising group of drivers, those who are under 25, now typically pay £1669 for their annual premiums. This is a decrease of 3.2% in the last 12 months.
In other news, motorists aged 25 to 49 have had their annual prices rise to 6.4% in the same 12-month period. This takes their total to £592.
The reason for rising insurance prices
This is because of all the pressure the motor insurance industry is facing with rising costs of raw materials, supply chain challenges, as well as rising claims costs. As a domino effect, car owners have been waiting for a longer period to get their car repaired, too.
Despite these issues, the motor insurance industry continues to be competitive. We recommend to shop around if you are looking for motor insurance as you can find the best price and the best policy that will suit your specific needs. We expect that prices may continue to rise due to the long-term effects of the pandemic as well as other global challenges.
Given the rising prices of annual car insurance, it is in the best interest of all drivers to circumvent any extra charges involving their vehicle. One sure way to not lose out on your investment is to get GAP insurance, which will give you the financial assurance if your car becomes a total loss. Reach us today on 0161 388 2550 for more details, or visit this page.