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4 in 5 motorists say cost of car insurance has risen

Richard Aucock

Written By Richard Aucock

More than 4 in 5 motorists have seen their car insurance premiums go up so far in 2024.

Comparison site Go.Compare surveyed more than 1500 people with a current car insurance policy to find out what prices they’d been quoted for renewal.

Over 80% said their car insurance premiums had risen.

To counter the rising costs, more than half of motorists said they now automatically shop around to get a renewal price and try to offset rising costs.

What’s more, 15% said they’ve chosen to pay car insurance premiums monthly, because they can no longer afford the lump sum up front.

A further 15% have increased the excess on their policy to save cash, and 8% have cut back on extras such as legal cover.

6% of motorists say they’ve removed windscreen cover from their policy – and 3% revealed the rising cost of car insurance has forced them to stop driving and sell their car altogether.

A growing number of motorists are cutting back on car insurance extras such as lost key cover to try and save money.

What do the experts say about car insurance price rises?

“It’s been widely reported that premiums have been rising for the past 12 months and this research shows just how far and wide it’s impacting people,” said Go.Compare car insurance spokesperson Tom Banks.

“While it’s good to see that so many people are now opting to shop around at renewal – which still remains one of the best ways to save on your insurance – it’s worrying to see people trying to cut back on their car insurance cover.

“No one wants to pay more than they have to for their insurance, but cutting back on cover, or simply opting for the cheapest policy and not checking you have the cover you need, could leave you short if you need to make a claim.”

How can you get cheaper car insurance?

If you’re surprised at the cost of your car insurance renewal premium, there are various steps you can take to cut it back.

A surprising tip is to not leave it until the last minute to renew. Go.Compare data shows that the best time to renew car insurance is a full 27 days before the renewal is due.

And the most expensive time to buy a new policy? On the same day your renewal is due. There’s a clear rule of thumb – the longer you leave it to renew, the more expensive the premium will be.

Another money-saving tip is to consider a telematics car insurance policy, also known as black box car insurance. While some may be reluctant to be ‘tracked’ as they drive, being able to base car insurance on your actual driving habits often saves money – particularly if you are a careful driver.

The Go.Compare experts also say it’s often useful to think about how you describe your job and the type of work you do.

“A chef may pay a different premium to a cook – even though the roles are very similar in reality, car insurers may treat them differently.”

Another top tip is to think about how you work, particularly post-pandemic. If you don’t actually commute as part of work, you can find a cheaper policy by describing your car insurance as for social use only. 

"But be honest – or you risk invalidating your policy." 

Each car is given a car insurance ‘group’. This is a number from 1 to 50. The higher the car insurance group, the more expensive that car will be to insure.

Lots of factors are used to determine a car insurance group, including its power and performance, cost to repair and theft resistance.

Other factors impacting car insurance prices include the age of the driver, whether they have any points on their licence, how long they’ve been driving, where they live and whether they keep their car overnight on the road, a driveway or in a garage.


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