Car insurance costs soar as 61% pay more for their renewal

A recent survey by leading UK car insurance comparison specialist Quotezone has found that 61% of those surveyed said their car insurance renewal was more expensive in 2023 despite their circumstances remaining the same.

The increase in costs was so worrying to some that a third admitted to rethinking driving altogether, with 29% of people stating the cost of renewing their car insurance had increased by more than £150.

But why has the cost of car insurance increased so much in 2023 and is there anything we can do to keep costs down?

Why is car insurance so expensive?

According to the Association of British Insurers, 2023 has seen the average cost of car insurance soar to a record high. This can be attributed to a number of factors with the ABI siting an increase of 33% in the cost of repairs, a 30% increase in courtesy car costs and a hike in personal injury claims.

In addition, insurers say inflation has led to a rise in energy bills, materials and the cost of paint.

An increase in claims and insurance fraud has also played a part as people exaggerating claims or providing false information has pushed up the cost for other drivers.

And with the DVLA reporting an 18% increase in what are considered higher risk drivers over the age of 80 over the last 2 years, sadly over 65 year olds face some of the largest price hikes.

How can I get cheaper car insurance?

When choosing car insurance, it’s important to strike the right balance between cost and coverage. Cheaper policies may seem appealing but if they don’t provide the comprehensive cover you are looking for, they could be a costly mistake.

To help new and renewal customers alike, Quotezone has listed their top ten money saving tips for choosing the best car insurance:

Top 10 tips for cheaper car insurance

1. Shop early

Premiums often increase the closer you get to your car insurance renewal date so get ahead of the game. The best and cheapest time to compare car insurance quotes is three weeks before your renewal date.

2. Pay annually

If you can afford it, pay your annual premium in full as insurers charge more for monthly instalments made by direct debit.

3. Improve the security of your vehicle

These days many vehicles have an alarm and immobiliser fitted as standard, but it may pay to add anti-theft devises such as a dashcam or tracker. It’s worth comparing quotes first however to check whether the lower premiums are worth the expense of fitting the additional devices.

4. Review your policy

Make sure you only include the services you need and estimations such as annual mileage are accurate. Also check things like the usage of your vehicle and that you’re not being charged extra for daily commuting charges if you now only work from home.

5. Add another driver

Adding another more experienced driver to a policy means you may be eligible for a multi-driver discount and lower premiums if the second driver is deemed as low risk. However, for insurance purposes the person who uses the vehicle the most should be named as the main driver.

6. Park in a safe place

You can save money on your car insurance by parking in a safe space such as a garage, driveway or carport. Parking in a driveway alone could save you over £140 a year in premiums whereas using a carport could save you around £230.

7. Build up your no claims bonus

Consider paying for any minor damages to your car as opposed to making small claims. Protecting and building your no claims bonus can play a significant part when it comes to reducing the price you pay for car insurance.

8. Opt for a telematics product or black box

Having a telematics device or black box fitted can reduce premiums, especially for younger drivers or those with previous motor convictions.

9. Avoid penalty points

Drivers can expect premiums to rise by 5% for three points and 25% for six points if they’re starting from a clean licence so avoid penalty points.

10. Compare everything

Always compare car insurance quotes and never just let your policy automatically renew. Comparison websites give you the option to compare providers, products and prices in one go.

One encouraging point that came out of the survey is the 91% of drivers who said they use comparison websites when it comes to renewing car insurance. A sign that in these difficult times, customers are getting savvy when it comes to every day finances.

*51% of consumers could save £490.26 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next five cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from June 2023 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.

Over50choices Ltd is an Introducer Appointed Representative of Seopa Ltd (FRN: 313860).