Survey data shows rising premiums persist despite competition, with 15.6% of UK drivers facing increases of 21%-40%
UK motor insurance premiums rose for 73.3% of policyholders at renewal, according to a consumer survey, despite ongoing competition in the sector. Nearly half saw increases of up to 20%, while 15.6% faced hikes of 21%-40%, with some exceeding 60%.
After two years of declines, motor insurance prices are rising again, driven by claims inflation, higher repair costs, and elevated labor expenses. Insurers face pressure to maintain profitability while balancing customer retention amid persistent cost challenges.
The findings suggest insurers remain cautious on pricing despite market competition, as underlying cost pressures limit scope for sustained reductions.