UK new motor insurance policies jump as cost of living squeezes households8 Aug 2022 12:07
The average policy for new motor insurance customers in the UK jumped in the the second quarter of the year as cost of living pressures start to squeeze households, according to a UK industry body.
New data from the Association of British Insurers (ABI) showed the average premium paid for a new policy in the period was £129 ($156) higher compared to a renewed policy.
Average premiums for new policies rose by 3% to £500 and average premiums for renewed policies increased by 0.5% to £371 over the three months, according to the ABI.
The numbers on Monday said that the typical price for private motor insurance has increased to £419, and insurers are finding it increasingly challenging to absorb rising inflationary pressures.
That was up by £5, or 1.3%, on the previous quarter, but still £11 lower than the same quarter in 2021.
In January, so-called price walking — a controversial practice where customers were signed up at a discount and then faced undue price rises over time — was banned in the UK.
While the ABI said it was still too early to fully assess the impact of the ban it added that the figures indicated a rise in the difference between new and renewed premiums.
The average new policy was £105 more expensive than the average renewal in the first quarter.
Good news if you already have a SAGA insurance policy - maybe not such good news if you're SAGA and can't put up your prices to those holders for a couple of years.