In June 2023, we reported that car insurance premiums were up to 16% higher compared to the previous year. As 2023 draws to a close, many motorists have found that their car insurance premiums have risen yet again.
In this post, we’ll discuss why car insurance has kept rising throughout 2023 and will likely continue into 2024. We’ll also explore some ways you might save money on the cost of cover.
Are you looking to save money on car insurance? If you manage a fleet, we can help you manage your motor risks and get the best deal for your cover. For more information, call us on 020 8290 9099 or email commercial.motor@anthonyjones.com.
Why Has My Car Insurance Gone Up Again?
- The Cost-of-Living Crisis – Inflation increases the cost of almost everything, including both the parts and labour required for car repairs. Rising repair costs means that insurers will have to pay out more in the event of an accident, so insurers will raise their premiums as a result.
- Energy Concerns – Certain global conflicts contributed to a wider energy crisis, resulting in a rise of fuel and energy costs. These rising costs make car repairs even more expensive.
- Severe Weather – In the past 12 months or so, the UK has seen record heat waves along with sudden cold snaps. Cars can suffer when subjected to extreme shifts between hot and cold, leading to more breakdowns and repairs. This will increase the overall number of claims for insurers to handle, which will contribute to an overall rise in premiums.
- Car Thefts – The past 12 months has also seen a rise in car theft, particularly among certain models. More car thefts mean more claims and payouts for insurers, which means higher premiums for all motorists.
- Import Issues – Finally, a number of factors have contributed to delays in the importation of certain car parts. This means that any cars that are undergoing repairs will be off the road for longer, while they wait for replacement parts. As a result, insurers will have to pay more for courtesy cars, and once more, this will result in higher premiums for all.
How to Save Money on Car Insurance in 2024
There are a few things you can try if you want to bring down the cost of car insurance:
- Switch to driving a car from a lower insurance group. But of course, selling your car and buying a new one just to save money on car insurance might be easier said than done.
- Offer to pay your car insurance annually, rather than monthly. Some insurers offer discounts if you pay your premium in a single lump sum, but many motorists will struggle to afford a high upfront cost for cover.
- Build up your no-claims bonus to make savings in the long-term.
- Increase your voluntary excess. This is an amount of money you’ll have to pay at the start of a claim, and the more excess you pay, the less you’ll pay for cover. Take care, though. Pay too much excess and you could find yourself seriously out of pocket should you ever need to make a claim.
Switch Your Insurer and How a Broker Can Help
Beyond this, the best thing you can do if you want to save money on car insurance is to switch to a different insurer. Even if your insurance renewal date isn’t due, if you switch to a different provider now you could lock yourself into a lower price, meaning you won’t have to face any more increases over the next year. Just bear in mind that some insurers will impose early exit fees.
This is where working with an insurance broker can help. We’ll take the time to get to know you, your insurance needs, and your budget. We’ll then help you find the best possible cover at the lowest possible price. For more information, call us on 020 8290 9099 or email commercial.motor@anthonyjones.com.
