Motor insurance premiums were 25 per cent more expensive in 2023, following a 50 per cent hike the year before
EV insurance claims already take 14 per cent longer and cost 25 per cent more than internal-combustion equivalents
WANT to know why your car insurance premiums are spiralling out of control, and what needs to be done about it? Our five-point plan to cut bills follows at the end of this exclusive Auto Express dive into a now-broken market, with multiple points of failure. It’s facing an array of new challenges, ranging from rampant recent inflation to almost uninsurable electric cars exported by Chinese manufacturers with insufficient spare parts back-up and a lack of critical repair information. From advances in car manufacturing and safety technology that are causing skill gaps and delays at repair shops, to hugely expensive EV batteries that can’t be economically repaired after the slightest external damage due to lack of manufacturer information and support.
Throw in hefty increases to the retail price of new cars, similarly high prices on the used market, and ongoing parts shortages, and there’s a perfect storm of contributory factors driving premiums through the roof. That’s before we get to seemingly rampant levels of car theft which, judging by your feedback, are routinely treated as a ‘no victim’ insurance issue by police forces who are inexplicably unfocused. Meanwhile insurance underwriters are grappling with hard-to-assess new risks associated with potential ‘collateral damage’ to other cars and infrastructure from EV fires, and the cost of mitigating new risks after accidents.
Increase
The upshot of all this is that motor insurance premiums were 25 per cent more expensive
