Car insurance premiums have soared over the past year as the number of claims, cost of repairs and higher prices for replacement vehicles climb following Covid lockdowns.
Now becoming one of the main costs for drivers, comparison site Confused.com argued people face a very real threat of no longer being able to afford the luxury, given higher living costs across the board.
According to Confused.com, average motor insurance has risen to £776 for UK drivers this year - up 40% on £554 in 2022.
This is due to a host of factors, including a rising number of vehicle thefts, higher costs of replacement vehicles, as well as inflation hitting the prices of spare parts.
Increasing external costs have therefore forced “insurers to play catch up,” Willis Towers Watson insurance broker Tim Rourke explained.
“Car insurance has quickly become one of the biggest expenses for drivers” as a result, Confused.com finance expert Louise Thomas continued.
“If prices continue at this rate then there’s no doubt drivers could be priced off the road, as they battle with other rising costs too.”
Urging people to shop around when renewing insurance, Confused.com tipped cheaper deals were often there to be had, especially given the prospect of rising premiums for those who have not even made claims.
Among the largest insurers were Admiral Group Plc (LSE:ADM), Direct Line Insurance Group PLC (LSE:DLG) and Aviva PLC (LSE:AV.) meanwhile, pulling in a combined £5.65bn from gross premiums written last year.