BMW owners have seen the biggest rise in the cost of insuring their cars with an eyewatering 46% annual hike in premiums, according to new research from ComparetheMarket.
VWs weren’t far behind with insurance up to £920 a year from £680 12 months ago though all of the major brands saw similar rises with Ford up 45%, Vauxhall 45% and Audi 44%.
Car insurers have been hit by a surge in the cost of repairs and have been quick to pass this through to customers, said the comparison website.
Last week, insurance trade body the Association of British Insurers said premiums for comprehensive motor insurance in the second quarter of 2022 were the highest they have ever been at £511 on average.
Ernst & Young earlier this year warned last year was the worst in a decade for insurers due to rising costs; with every £1 received by motor insurers in premiums they paid out £1.10 in claims and operating costs.
Catherine Carey at Consumer Intelligence added: “Insurers are now adjusting prices to recoup these losses and reflect the ongoing impact of inflation.”
ComparetheMarket's Anna McEntee highlighted that motor insurance premiums have surged by 39%, averaging £743 in June 2023, and emphasised the importance of shopping around to save up to £457 by switching policies.